On the Causal Relationship between Government Expenditure and Tax Revenue in Pakistan
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.
Volume (Year): 9 (2004)
Issue (Month): 2 (Jul-Dec)
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- Paul R. Blackley, 1986. "Causality Between Revenues and Expenditures and the Size of the Federal Budget," Public Finance Review, , vol. 14(2), pages 139-156, April. Full references (including those not matched with items on IDEAS)
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