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On the Causal Relationship between Government Expenditure and Tax Revenue in Pakistan

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Title: On the Causal Relationship between Government Expenditure and Tax Revenue in Pakistan

Authors: M. Haider Hussain

Journal: Lahore Journal of Economics

HEC Recognition History
Category From To
Y 2024-10-01 2025-12-31
Y 2023-07-01 2024-09-30
Y 2022-07-01 2023-06-30
Y 2021-07-01 2022-06-30
Y 2020-07-01 2021-06-30
Y 1900-01-01 2005-06-30

Publisher: Lahore School of Economics, Lahore

Country: Pakistan

Year: 2004

Volume: 9

Issue: 2

Language: English

DOI: 10.35536/lje.2004.v9.2.a6

Categories
Causality (17) Government Expenditure (9) Tax Revenue (3) Public Finance (659) Economics (27414)

Abstract

This paper applies the technique of Granger Causality to determine the relationship between total government expenditures and total tax revenue using annual revised estimates. The analysis discovers a firm unidirectional effect from expenditure to revenue suggesting the preference of controlling the spending decisions to reduce the tax revenue-expenditure deficit.

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