Government Revenue

In Nigeria, taxation serves as a mandatory financial instrument for national interests, wealth redistribution, and economic stability. This study investigates the impact of tax adjustments on mitigating economic crises in the construction sector from 2020 to 2024. The research examines project viability, job creation, and continuity, evaluating amendable levy arrangements, identifying profitable financial approaches, and discussing challenges in implementing these strategies to enhance sectoral resilience. The study employs thematic analysis, comparative regional policy evaluation, and case studies to highlight issues such as construction costs, investment trends, government revenue fluctuations, project viability, employment, compliance, and macroeconomic effects. Tax revenues in the construction industry steadily increased from ₦10 billion in 2020 to a peak of over ₦50 billion in 2023, driven by aggressive tax adjustments, improved compliance, and economic recovery. A slight decline to ₦42.5 billion in 2024 suggests the introduction of tax relief measures or reduced construction activity. The construction indicator showed consistent improvement, reaching baseline efficiency (100%) in 2024, reflecting recovery from inefficiencies observed in 2020 (123%) and 2021 (118%). Nigeria's GDP growth fluctuated, with a significant contraction in 2021 (-1.79%) during the post-pandemic recovery, followed by stabilization at 2.86% in 2024. Inflation rates, however, rose steadily, from 11.40% in 2020 to 24.66% in 2024, imposing macroeconomic challenges. Key reforms, such as the 2020 Finance Act, which increased VAT to 7.5%, contributed significantly to higher revenues, with VAT collection peaking at 45.02% in 2023 before stabilizing at 19.10% in 2024. These findings underline the necessity of balanced tax policies to sustain economic stability, emphasizing their role in mitigating crises and ensuring the viability of construction projects. The insights aim to guide Quantity Surveyors in incorporating tax adjustments into cost estimates, enabling adaptive strategies during economic downturns while fostering sectoral and national resilience.

This paper examines the government revenue-expenditure nexus for the Free State Province in a multivariate modelling framework using real GDP and inflation as control variables over the period 2004Q2-2018Q1. Cointegration and intertemporal (causal) links among variables were established employing Johansen-Juselius (1990) within a vector error correction model (VECM) and Toda-Yamamoto (1995) non-Granger causality test. Cointegration analysis affirms the existence of a longrun relationship between variables. The results of the causal analyses show a bidirectional causality between government revenues and expenditures in both the long-run and short-run, supporting the fiscal synchronization hypothesis. Real GDP and inflation individually Granger-causes government revenues in both the long-run and short-run, stressing their importance on generating revenue. Based on these findings, an isolated fiscal measure to raise tax-revenues or cut expenditure will exacerbate fiscal imbalance. The Free State government through its provincial treasury should adhere to a planned budget process, devise innovative revenue-generating strategies to circumvent the burden of producing inflation revenue, and effectively use its autonomy on fiscal instruments to maintain a sustainable fiscal policy path and stimulate economic activity level.

The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. This paper proposes a framework for assessing fiscal sustainability in heavily indebted countries dependent on exhaustible resources, with reference to Gabon. It finds that fiscal sustainability could be achieved by: (i) developing a fiscal rule for the non-oil primary fiscal balance compatible with an objective for reducing the debt-to-non-oil GDP ratio; (ii) introducing a constant oil-based income transfer per capita allowing intergenerational equity; and (iii) building up an oil savings fund. Long-term simulations show that Gabon's fiscal position is fragile and that a fiscal policy path consistent with the proposed framework could help achieve comfortable levels of net wealth.

Governments do not have perfect information regarding constituent priorities and needs. This lack of knowledge opens the door for groups to lobby in order to affect the taxes they pay the government. We examine the political economy of a decentralised revenue-raising authority in light of social protection expenditures by constructing a theoretical model of hierarchical contests and comparing the implications of centralised with decentralised governance. Increasing information available to the government may generate additional expenditures by constituencies trying to affect government taxation decisions.

The economic benefits of inflation analysis are generated after a shock or after the regions interact. This research is spatial panel modeling. The weighting matrix used is Double Power Distance Weights which gives the best results using Spatial Autoregressive (SAR) model with Fixed Effect Model (FEM). Spatially, inflation in a region has an impact on 2 nearby regions with high correlation. Impact measure is the significant impact of infrastructure, Bank Indonesia Performance (BI performance), Locally-Generated Revenue (PAD), government spending, and energy consumption on inflation, both directly and indirectly. Analysis of the p-value is smaller than the alpha of 5% and 10%, so the direct effect on PAD, government spending, infrastructure, BI performance, and energy consumption is significant on inflation in Indonesia. The findings are interesting because the value of indirect impact is greater than the direct impact, so it can be interpreted that the interaction factor between regions is very strong. Accessibility of infrastructure between regions causes interaction and mobilization to occur. The findings of this research provide recommendations that the government needs to improve physical connectivity (roads, toll roads, bridges, airports, ports, etc.), both for the western and eastern regions of Indonesia. Elements of government fiscal policy with a countercyclical character in managing government finances as well as efficiency in energy management & consumption in creating lower energy intensity values can be recommended because they are determining factors for controlling Indonesia's inflation. In general, the spatial panel econometric model is used in the scope of development economic studies and regional economics. In Indonesia, studies on the determinants of inflation, especially from the supply side known as non-monetary factors, are rarely analyzed. In general, previous researchers focused on modeling through the transmission of core inflation formation (CPI inflation) which is known as the supporting side of monetary policy, and setting inflation targets such as aggregate demand-aggregate supply factors, inflation inertia, output gaps, and interest rates. Meanwhile, this study highlights the determinants of inflation from a non-core inflation perspective, namely real sector policy and fiscal policy. Non-core inflation stems from supply shocks resulting from the imposition of non-fundamental factors that shape inflation, such as volatile food policies and administered inflation. These non-fundamental factors are represented by production disruption variables, supply shocks, or distribution disruptions due to infrastructure disruptions, especially roads and energy consumption policies such as fuel oil and electricity. Administered Price policy is represented by the government's fiscal policy variable. Thus, this research is a combination of monetary policy studies and government fiscal and real sector policies. The results of this research are expected to serve as recommendations and considerations for the government and other interested parties in formulating policies related to determining inflation. This inflation determinant factor considers the spatial interaction factor between districts/cities in Indonesia which ultimately determines the national inflation rate.

This paper examined Taxation as Source of Revenue Generation in Local Governments, Nigeria which covers a period of 5years (2013)(2014)(2015)(2016)(2017). The researchers' adopted a descriptive and empirical case study approach using secondary data. Findings revealed that some of the potential sources of revenue are completely neglected by the local government authority and also finds out that civil servants constitute the highest source of tax revenue in form of PAYE to the local government. Also, it shows that taxation in no doubt have impacted the economic development of Nigeria in general. Based on this study, it is recommended that periodical training of tax officials should be introduce by the government to maintain high generation of tax revenue and the system deserves autonomy that will enable it to hire the right quality of staff and equipment that it deserves to make it function effectively.

Bhutan has a unique policy of “high value, low impact”, towards tourism. The tourists visiting the country are divided into two forms, first are the ones who have been covered under the above-mentioned policy, whereas the second are the regional tourists, who are the tourists mainly from the three SAARC nations viz, India, Maldives and Bangladesh. As per the diplomatic agreement the visitors from these countries are exempted from the tourism policy and are considered to be of low value to the Bhutanese economy from the revenue and employment point of view. However, the regional tourists have been sharing a significant share of more than 50% in the overall tourism in the kingdom before covid 19. With the global pandemic, the rationale of having regional tourists and creating appropriate policies to deal with them has been a point of deliberations now. The point of consideration has been about the way regional tourists can affect the hotel industry in Bhutan as it contributes to the i...

In Nigeria, tax income collection has become a crucial policy goal for the government. The influence of tax reforms and digitalization on government income in Nigeria is therefore investigated. The study focuses on evaluating the distributional outcomes of tax revenue and digitalization on both federal and state government revenues. An ex post facto research design was adopted in the study and both descriptive and inferential analysis of the hypothesized relationships was performed. The relationships are analyzed using secondary data from 1996 to 2020 and a dynamic framework based on the autoregressive distributed lag (ARDL) approach to cointegration. The study confirmed that company income tax reforms improved federal government revenues but inhibited state government revenues (SGR) in Nigeria. It is therefore recommended that the conduct of fiscal reforms in Nigeria should evolve to become more of a bottom–top approach where all tiers of government are included.

The issue of public finance sustainability is very important for all EU member states in the actual context after the economic crisis. This article makes an analysis of the sustainability of public finances for the new member states (which joined EU in 2004 and 2007). Firstly, we try to analyze the impact of the economic crisis on public finances sustainability. The sustainability of public finances can be reflected through the level of public debt and budget deficit for a country. For this reason the article presents the evolution of budget deficits for NMS 12 before and after the recent economic crisis. Based on the econometric regression the correlation between economic growth rate (indicator used for measuring the economic evolution) and the budget deficit is revealed. Results for Romania and NMS 12 are quite similar; fact that tells us that the status of public finances is following the same trend in Romania as in the NMS 12.

Romania's progress demands to be included the principals of sustainable development in it's development strategy. Within this framework the importance of studying and analyzing the tourism evolution can be noted. The need of knowledge regarding the fluctuations canned by the results of the tourism related activities allowed the approach of the issue related to the correlation stage of the accommodation capacity and the number of tourists arrived within the accommodation structures in Romania during the 2000-2008 period. The mutual involvement relationship, existence, direction form and intensity of the connection between the two indicators are analyzed within this paper. The conclusions following the analysis of the obtained results, shape as an upper phase in filling in the image of the Romanian tourism, bearing in mind the establishment and application of sustainable development strategies.

The paper attempts to estimate the welfare impact of different policy interventions in the foodgrain markets in Bangladesh using an economic surplus approach. Over the period of analysis, 1980-2003, the loss in consumer surplus exceeded the gain in producer surplus plus the gain in government revenue. Therefore, the interventions resulted in a deadweight welfare loss for society. In contrast, in the policy of liberalization, the gain in consumer surplus and in government revenue is larger than the loss in producer surplus, producing a net welfare gain to society.

Introduction Waterpipe tobacco is taxed at half the rate of cigarettes in Egypt and, unlike cigarettes, does not have a specific excise component. We aimed to simulate the introduction of a specific excise tax on waterpipe tobacco consumption, premature deaths and government waterpipe tobacco revenue in Egypt. Methods We took model inputs from the latest available data on consumption, market shares and market share prices, price elasticities of demand, tax structure and from discussions with government officials. We modelled increases to specific excise to produce a 45%, 55%, 65% and 75% tax burden and compared a simple (specific only) structure with a mixed (specific and ad valorem) structure. Results Under the simple approach, introducing a US$2.1 specific tax would result in a 75% tax burden with 67% fewer waterpipe tobacco units smoked, 1 004 604 averted premature deaths and a 236% increase in government revenue relative to the current tax structure. At the 75% tax burden, the simple approach resulted in 1.5% fewer waterpipe tobacco units consumed, 9000 more averted premature deaths and 12.7% more government revenue compared with the mixed approach. Results for other tax burdens are presented and remained robust to sensitivity analyses. Conclusions Introducing a specific excise tax on waterpipe tobacco in Egypt can yield considerable government revenue and public health gains. We recommend the simple approach, in line with the WHO recommendations, which produces greater economic and public health gains than the mixed approach and is easier to administer for the Egyptian government. ⇒ We provide policy makers the contextualised evidence for different tax policy approaches that could be framed as phased implementation through gradual and regular increase in tax burden. ⇒ This model unfolds potential to improve government financing while protecting public health.

All rights reserved 1 2 3 4 5 12 11 10 09 This working paper is a product of the Commission on Growth and Development, which is sponsored by the following organizations: Australian Agency for International Development (AusAID) Dutch Ministry of Foreign Affairs Swedish International Development Cooperation Agency (SIDA) U.K. Department of International Development (DFID) The William and Flora Hewlett Foundation The World Bank Group The findings, interpretations, and conclusions expressed herein do not necessarily reflect the views of the sponsoring organizations or the governments they represent. The sponsoring organizations do not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of the sponsoring organizations concerning the legal status of any territory or the endorsement or acceptance of such boundaries.

All rights reserved 1 2 3 4 5 12 11 10 09 This working paper is a product of the Commission on Growth and Development, which is sponsored by the following organizations: Australian Agency for International Development (AusAID) Dutch Ministry of Foreign Affairs Swedish International Development Cooperation Agency (SIDA) U.K. Department of International Development (DFID) The William and Flora Hewlett Foundation The World Bank Group The findings, interpretations, and conclusions expressed herein do not necessarily reflect the views of the sponsoring organizations or the governments they represent. The sponsoring organizations do not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of the sponsoring organizations concerning the legal status of any territory or the endorsement or acceptance of such boundaries.

Background: The prohibition on using social assistance funds for purchasing cigarettes has been stipulated in the Minister of Social Affairs Decree Number 175 of 2022. However, the primary goal of this program to improve community welfare is threatened as this misuse persists. Aims: This study aims to analyze the challenges and obstacles in implementing the policy to control cigarette consumption among social assistance recipients and to identify integrated priority programs across sectors. Methods: This qualitative study employs a case study approach. Data were collected through in-depth interviews and focus group discussions with informants representing central governments, regional governments, and social assistance officers. The interviews were then analyzed using SWOT analysis to formulate strategies and identify the priority program. Results: The analysis reveals that cross-sector collaboration is a key strength for reinforcing cigarette consumption control among the recipients. This is implemented through the Family Capability Improvement Meeting (P2K2), involving healthcare workers who educate the dangers of smoking and establish Smoking Cessation Service Clinics (UBM). The proposed priority program integrates the social assistance program with UBM clinics to help recipients quit smoking. Conclusion: The study concludes that strengthening this policy requires comprehensive program integration with multi-sector involvement. This enhancement also necessitates stronger central regulatory support through the Government Regulations as derived from Health Law Number 17 of 2023. Strengthening this policy is expected to contribute to achieving the SDGs by improving community health and quality of life, and alleviating poverty through improved effectiveness of the social assistance program.

This study comparatively examined the validity of the theory of uncovered interest rate parity (UIP) for Nigeria and United States of America (USA) and for Nigeria and China, using USA and China as anchor countries respectively. The study also examined the impact of the theory (UIP) on investment in Nigeria. Using annual time series data spanning from 1980-2017, the pre-estimation test (Augmented Dickey-Fuller Unit root test) was conducted. Given that the variables were integrated of order one and order zero, Autoregressive Distributed lag bound testing approach (ARDL) and Toda- Yamamoto causality test were employed for analysis. The ARDL result indicates that there is no long run relationship between Nigeria and USA but there is a long run relationship between Nigeria and China. By implication, the theory of UIP does not hold between Nigeria and USA but between Nigeria and China, the theory of UIP holds. Also, the result of Toda-Yamamoto indicates that the theory of UIP positively ...

This study aims to explore the mechanism that corroborates the political-economy explanation of the resource curse in oil rich developing countries. This mechanism elucidates that increasing resource rents provides higher incentives for leaders to remain in power, through a deliberate refusal to improve taxation capacity, which would, in turn, reduce the tax burden on its citizens to reduce their demand for accountability. Using a panel data set for 25 oil producing developing countries for the period 1996-2011, the study demonstrated that oil abundant developing countries lack adequate taxation capacity which influences fiscal contract through taxation of the citizens and minimises the scrutiny of government and the demand for accountability. In turn, the economy is plagued by inadequate provision of public goods and a limited means to raise revenue to finance government expenditure. The empirical analysis supports this mechanism. To this regard, it concludes that the presence of oil in the selected countries can undermine accountability.

This study evaluated the impact of oil price changes on certain budget variables in Jordan over the period of 1992 to 2015. Time series data were analyzed using econometric techniques that included ordinary least squares. Findings from the analysis revealed a statistically significant positive correlation for oil price on government and tax revenues, external grants, and government expenditures, whereas oil price on budget deficits had a statistically significant negative correlation. Therefore, the study proposes that the government of Jordan directly invests its oil tax revenues in economic sectors, such as agriculture and manufacturing, to broaden the sources of revenue, as well as exploit such revenues to establish alternative energy projects, whether from the sun, wind, or both. In addition, the establishment of such projects is suitable for the conditions of the Jordanian environment.

This study evaluated the impact of oil price changes on certain budget variables in Jordan over the period of 1992 to 2015. Time series data were analyzed using econometric techniques that included ordinary least squares. Findings from the analysis revealed a statistically significant positive correlation for oil price on government and tax revenues, external grants, and government expenditures, whereas oil price on budget deficits had a statistically significant negative correlation. Therefore, the study proposes that the government of Jordan directly invests its oil tax revenues in economic sectors, such as agriculture and manufacturing, to broaden the sources of revenue, as well as exploit such revenues to establish alternative energy projects, whether from the sun, wind, or both. In addition, the establishment of such projects is suitable for the conditions of the Jordanian environment.

In preparing this paper, the indirect tax systems in the Dominican Republic are examined both in terms of tax policy and also their revenue importance. These taxes include the taxation of import, value added (ITBIS), selected excise taxes, exit and entry taxes (tourism taxes), and the taxation of casinos and games of chance. The focus are both on the short-term revenue requirements of the government as well as on the tax reform measures that are needed in order to meet the longer term revenue requirements of the public sector. These reforms are taking place in an environment where tariff and institutional barriers to international trade are being reduced.

This study, gathered the most important economic variables that influence different countries interest rate such as, inflation and public deficit. Interest rate and inflation play an important role in monetary policy, and influence different countries decisions making regarding economic practices. Also, budget deficit can be used as a tool to measure governments’ financial performances. This study comes to investigate the dynamic relationship between budget deficit, inflation, and interest rate in Jordan for the period span from 1992 to 2015. Through employing more advanced methodologies such as, Johansen Co Integration Test, and Granger Causality Test.Taking into consideration the econometrics analysis and johansen co integration test our study reported for a long-term relationship between budget deficit, inflation, and interest rate. Also according to the VECM model which refers to refers to there is a long run causality running from interest rate and inflation rate toward budget ...

Tax evasion and avoidance are both phenomena that are probably as old as taxation itself. Literature revealed that tax avoidance and evasion represent some of the perplexing problems facing the Nigerian economy. The study adopts a quantitative research design, employing a standardized questionnaire as the primary research instrument. The study population comprises personnel from the Oyo State Internal Revenue Service. The findings revealed a significant positive relationship between tax evasion and IGR, indicating that tax evasion negatively impacts revenue generation. Similarly, tax avoidance is found to have a significant negative relationship with IGR, implying its detrimental effect on revenue. The study concluded that resistance towards tax obligations leads to the disturbance of the government's essential services, such as health services, education, sanitation, transportation, and infrastructure. The study recommends that urgent steps should be taken by public office holders to live up to expectation when it comes to transparency, accountability and the war against corruption.

Fiscal policy has been a tool for economic stabilisation in developing economies for decades. Ever since the Great Depression, fiscal policy has been in the frontline of policy actions. This study investigates the impact of fiscal policy tools on unemployment rate in Nigeria between 1991 and 2021 using the autoregressive distributed lag model. The study has found the presence of cointegration among the variables. Additionally, taxation was found in the long-run to have no impact on unemployment rate while government spending in the long-run worsens unemployment largely due to unproductive and wasteful spending. In the short run, both taxation and government spending worsen the unemployment situation in Nigeria. It, therefore, indicates that the tax system in Nigeria may not be very effective over time. It is thus recommended that the government should consider cutting down expenses and accomplish an expenditure switch from more recurrent spending to more capital and infrastructural ...

This study examined how fiscal deficit, exchange rate, and inflation rate impacted the economic growth of the Nigerian economy from 1980 to 2019. The cointegration connection in the study was discovered using the autoregressive distributed lag (ARDL) bound test. The analysis found that, while inflation and the exchange rate have a positive and significant relationship with the Nigerian economy, the fiscal deficit has a negative but relatively insignificant effect on the country's GDP. The Nigerian government should stabilise the currency's external value and prevent it from falling in value in the short term. Such policies should be developed to encourage people to pay taxes while providing incentives to those who abide. The government should lower lender interest rates to boost small domestic investors to make investments and create jobs while increasing government revenue. Government agencies should reduce luxuries and wasteful spending to avoid a fiscal deficit.

We develop a North-South model with cross-border pollution. In the South, pollution is abated by both private producers and the public sector. The North suffers from cross-border pollution from the South. The policy instruments are foreign aid for the North, and funds for public abatement, emission tax rate, and a tax on foreign capital, for the South. We characterize the Nash equilibrium under two scenarios: foreign investment is (i) exogenous, and (ii) endogenous. Under (i), we examine the effect of a reform where both foreign investment and aid are changed in an income-neutral way. In the latter case, we analyze the effect of a tax-induced change in foreign investment on pollution. In both scenarios, an inflow of foreign investment unambiguously reduces the net emission of pollution.

The study ascertained the extent the accrued revenue generation has enhanced economic growth in Nigeria from 1981 to 2015. Secondary data sourced from Central Bank of Nigeria (CBN)’s Statistical Bulletin and National Bureau of Statistics (NBS) on such variables like real gross domestic product; oil revenue; non-oil revenue; labour force; social and economic services expenditure during the period were made use of. The collected data were analyzed using appropriate descriptive and inferential statistics like regression analysis and time series using E-views 9 statistical package. The Autoregressive Distributed Lag (ARDL) Model approach was adopted to consider the long run elasticity as well as the short dynamics among the variables of interest. The result of the analysis showed that labour force has a positive impact on economic growth in Nigeria during the time and there exist a significant positive relationship between oil revenue and economic growth in Nigeria. The gross fixed capi...

This paper analyzes the macroeconomic effects of fiscal shocks in Bangladesh using the sign restriction approach in a Bayesian structural vector autoregression (SVAR) framework. We identify a generic business cycle shock to deal with the endogenous movement of fiscal variables along with a monetary policy shock to absorb the variations due to those shocks. Both unanticipated and anticipated fiscal shocks, that is, government expenditure and revenue shocks, are also identified by minimal sign restrictions. In identifying those shocks, we do not impose any restrictions on the sign of the key variable of interest. We find that private investment and consumption significantly increase due to expansionary government expenditure shock. Such an increase in private consumption is consistent with neo-Keynesian prediction. The fall in output due to the tax increase shock is highly robust. Private consumption also decreases due to a tax increase, although investment does not. The results suggest that fiscal policy, especially tax policy, is more effective than monetary policy in stabilizing output. Moreover, the fiscal authority could increase government expenditure without hurting private investment.

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

The purpose of this paper is to assess the impact of earmarking on central government environment protection expenditure. Since central government spending for the environment relies on earmarked revenues, which is not the case of the local government, it is expected that central government expenditure is to a lesser degree affected by macroeconomic developments. The analysis indicates that this is the case because correlation between GDP change and the change in central government expenditure for environment protection is smaller than that of the local government. It is also found that increasing revenues from earmarked environmental charges have contributed to growing expenditure. However, the analysis also suggests that the main driver of this growth is the expansion is EU funds. Reliance on EU expenditure was further reinforced by changes in earmarking rules in 2008-2009.

This empirical study assesses the effect of the current fiscal federalism structure in Nigeria on the generation of public revenue in Nigeria. This is due to the occurrence of continuous budget deficit in Nigeria. Secondary data were obtained from the Central Bank of Nigeria Statistical Bulletin, 2018 and analyzed using the regression analysis. The result showed that that there is a significant relationship between Nigeria's present fiscal federalism structure and the revenue generated. It is recommended that Federal Government should be responsible for creating more avenues to increase the level of revenue to the federation account than any other tier of government. It is also recommended that state tier and local tier of government should creatively examine their territories to raise internal revenue for their individual territory administration.

Over the years unemployment has increased tremendously in Ethiopia. It is a social and economic problem that has eaten deep into the Ethiopian economy. The main objective of this study was to examine the short term and long-term effects of Government spending and Tax revenue on unemployment in Ethiopia. Annual time-series data for the period of 1990-2021 were employed. The ARDL approach to co integration is applied to investigate the long run and short-run determinants of unemployment. The results of unit root suggested that both variables in the model were stationary after first difference. The results from regression analysis revealed that Government expenditure has the negative impact on Unemployment of Ethiopia. Co-integration technique was employed to establish the relationship between Fiscal policy and Unemployment. The results of co-integration test using ARDL test showed that over the period of 1990-2021 their Fiscal policy and Unemployment a negative and statistically significant short-term relationship was found. Furthermore, pairwise Granger causality test as well applied in order to find out the directional causation between Tax rate and Unemployment rate. The result indicates unidirectional causality running from unemployment to Tax and government expenditure. The concerned body should increase government spending. Therefore, the author recommends the need to increase expenditure on in productive ventures that are labor intensive which would increase employment.

This study estimates the effect of state legislative term limits on state tax revenue, general expenditure and its main components: welfare, highways, health, education, and state aid to local governments. Two alternative measures of term limits are used: an original term limit index developed in this paper and the potentially endogenous average legislative turnover rate. Controlling for economic, institutional, political, and demographic factors as well as the endogeneity of legislative turnover, we find that the two distinct measures of term limits have qualitatively similar effects on state government finances. Our estimates indicate that stricter legislative term limits not only increase legislative turnover and the size of government, but also change the composition of government spending.

This paper examines the impact of fiscal policy on inflation in Nigeria for the period 1981-2021. The study adopts autoregressive distributed lag (ARDL) bounds testing approach. The unit root results revealed that other variables apart from inflation were stationary after first difference. The bound test result shows that the variables cointegrate. The ARDL long-run result shows that oil revenue has a negative significant impact on inflation, while government recurrent expenditure and capital expenditure have positive impact on the inflation, with the impact of recurrent expenditure significant. The results further showed that the impacts of oil revenue, recurrent expenditure, and capital expenditure in long-run was also maintained in the short run. Lastly, exchange rate and total imports have negative impact on inflation, while foreign direct investment inflow has a positive impact on inflation in both long-and short-run. The government should review her fiscal policy to adjust recurrent and capital expenditure, and to reduce import by encouraging consumption of local products.

We are grateful to Silvia Albrizio and Matthijs Lof for research assistance and an anonymous referee for useful suggestions. The opinions expressed herein are those of the authors and do not necessarily reflect those of the European Central Bank or the Eurosystem.

We are grateful to Jacopo Cimadomo, Javier Pérez, Ad Van Riet, Jürgen von Hagen, participants at an ECB seminar, and an anonymous referee for helpful comments and to Silvia Albrizio and Matthijs Lof for research assistance. Luca Agnello would like to thank the Fiscal Policies Division of the ECB for its hospitality. The opinions expressed herein are those of the authors and do not necessarily reflect those of the ECB or the Eurosystem.

This study utilized time series data from 1980 to 2023 and applied VAR and Structural VAR econometrics
models to study the determinants of foreign exchange reserves in the U.A.E in the short-run.
The results obtained from both models showed that current account balance has a statistically significant
and positive impact on foreign reserves. VAR results showed that broad money supply
(M2), as a measure of monetary policy, has a statistically insignificant negative effect. However,
results obtained from SVAR showed a statistically significant positive effect of monetary policy
on foreign reserves. One surprising result is that oil prices has a statistically insignificant negative
effect on foreign reserves. One explanation might be that revenues from oil exports are already captured
by current account balance. However, further analysis is needed to understand the dynamics
of the relationship between oil prices and foreign reserves in the U.A.E. Based on these findings,
it is recommended that U.A.E.’s policymakers should focus on forming policies that enhance the
current account balance.

The sphere packing problem involves packing non-overlapping spheres with maximum volume into a convex set. The purpose of this work is to propose a novel application of the sphere packing problem to the government budget issue and to formulate a mathematical model for reducing the government budget deficit. In the numerical experiment, we used statistical data on the Mongolian economy from 2013 to 2022. We considered 19 types of revenues and 28 types of expenditures. The numerical experiment shows that with specific adjustments to current government revenue and expenditure, the government can decrease the budget deficit.

This study was designed to analyze the implication of Macroeconomic fundamentals on twin-evil of Macroeconomic phenomena: "with the focus on Nigeria.'' Methodology: The study Utilized annual time-series data on exogenous variables (Government Deficit Spending, GDS; Official exchange rate, OEXCHR; Monetary policy rate, MPR) to capture Macroeconomic fundamentals. While, Unemployment rate, UNEMPLR; Inflation rate, INFLR and Consumer price index, CPI were used as a summation of Macroeconomic phenomena to capture Misery index. The data on variables used in the study were sourced from Nigerian federal ministry of finance; Central Bank of Nigeria; and World Bank data bank between 1991and 2022 respectively. The study employed econometric techniques of ordinary least square and Two-stage least to analyze its data.  The study of Ordinary Least Square revealed that Government deficit spending and official exchange rate significantly eradicate misery index in a positive manner. Meanwhile, monetary policy rate insignificantly eradicate misery index in a negative manner. There was also a further revelation from the findings of two-stage least square that government deficit spending and official exchange rate exert concerted significant strength to eradicate misery from every citizen of Nigeria within the periods under study.. Meanwhile, the result found that it was insignificantly weak for monetary policy rate (MPR) to minimize misery index from every Nigerian citizen within the periods under study. Unique Contribution to Theory, Practice and Policy: The study concluded that the authority should maintain a sound policy that will oversee money borrowed for critical projects and use it to create employment opportunity for Nigerian citizenry, ensure exchange rate is kept within a certain band that will reduce high cost of goods and services in the economy that we are currently facing and jettison the idea of increasing monetary policy rate, since this displayed a negative sign to help reducing misery index of the Nigerian populace during the periods of study.

This paper assesses the sustainability of fiscal policies in a panel of eight Middle East and North African countries over the period 1990 – 2010. Employing recent panel unit root and co-integration techniques, we find that fiscal policies are consistent with inter-temporal budget balance in accordance with the present value approach. The Pooled Mean Group estimator shows that there was no significant causality between government revenues and expenditures in the short-run. However, there is a long-run fiscal synchronization which demonstrates that fiscal sustainability strategies should aim at increasing revenues and cutting spending concurrently to avoid fiscal deficits and its attending problems such as high taxation, reduced savings and investments.

The relationship between government expenditure and its revenue is generating serious debate among researchers. Similarly, their has been a controversy between the classical and the bayesian modelling. Therfore, this study examined the relationship between the government expenditure and its revenue in Nigeria using the bayesian approach. The finance data extracted from the Central Bank of Nigeria statistical bulletin from 1989 to 2018 were considered for the study. Bayesian linear regression was used to fit the model. Normal distribution was fit for the likelihood. Thus, normal-gamma prior was elicited for the bayesian regression parameters. The result showed that the Bayesian estimates with elicited normal-gamma prior produced a better posterior mean of 0.536 for the Total Revenue with a smaller posterior standard deviation of 0.00001 when compared with the OLS standard deviation of 0.05256. Similarly, the total revenue explained 78% variations in the Total expenditure. The constru...

Personal income tax is the tax paid by individuals from both the formal and informal sectors of the economy. While those on employment pay as they earn which is popularly known as PAYE, those in formal and informal sectors are directly assessed based on the income they generate from their entrepreneurial ventures, which is also known as Direct Assessment. The aim of this paper is to assess the contribution of personal income tax as a source of revenue for state governments in Nigeria.. Data for the analysis were derived from published secondary sources. The paper has established a significant difference between the amount generated as internally generated revenue and the inadequacies of the internally generated revenue to cater for the states' total expenditure profiles. There is also an indication of a higher reliance on the federation account for the states revenue profile. It is recommended that the states must look inwards and develop new strategies to enhance their internally generated revenue base, most especially given the current dwindling prices of oil in the international market.

Nigeria is one of the most highly indebted countries that have low income growth and low per capita income. Government seems to lack the potentials to generate revenue domestically to meet up with developmental goals and other national in order to attain the desire economic growth. Hence government resorts to borrowing. The paper examines the relationship between domestic debt and economic growth in Nigeria. The results reveal that domestic debt does not have significant impact on economic growth in the short run but significant negative impact in the long-run. The government should therefore monitor the disbursement of loan on real growth- enhancing capital projects instead of recurrent expenditure. Also, government should formulate policies aimed at increasing her ability to generate more revenue to meet her expenditure demand.

The annual budget in Nigeria is meant to run from January to December each year. However, delay in budget approval has become a yearly routine resulting in significant budget variance often. Thus, the appropriation bill of the year 2020 was signed into law in the first week of the year to address the situation but was greeted with a shock from Coronavirus pandemic ravaging the whole world including Nigeria. The study, therefore, examined the causal relationship between budget variance and fiscal policy of government with the use of Vector Autoregressive (VAR) technique. The findings revealed that budget variance in Nigeria was as a result of distorted and inconsistent policy thrust of government in recent time. Nigerian Government should ensure that both capital and recurrent expenditure are effectively managed in such a way that it will drastically reduce (if not completely eliminated) variances and discrepancies occurring in the nation's budget.

Resumen: En este trabajo se analizan dos posibles alternativas financieras a la pérdida de recaudación en la financiación de las Comunidades Autónomas de Régimen Común, motivada por la supresión del Impuesto sobre el Patrimonio para la declaración del año ...

The main objective of this study was to investigate the influence of government budget deficit financing on economic development in Nigeria. Six research hypotheses were formulated to evaluate the relationship between government budget deficit financing, unemployment, inflation, BOP, government financing, and government revenue as the independent variables and GDP as the dependent variable. Secondary data was collected from CBN statistical bulletin. Ordinary least square regression technique was used to estimate equations formulated for the study. Results of the findings revealed that: there exists a significant relationship between budget deficit financing and economic growth in Nigeria. An inverse relationship existed between GDP and unemployment in Nigeria, a direct relationship was observed between GDP and inflation in Nigeria. The findings also show that there existed a significant relationship between GDP and government expenditure and an inverse relationship was observed betw...

Economic development indicators with regard to Nigeria as a nation have not been favourable as development indicators of Nigeria in recent times and over the years has shown. The situation perhaps necessitated the adoption and implementation of TSA policy by the government. Over the years, government has come up with different efforts and policies that could be used towards driving the economy towards the paths of development. One of such policy thrust is the issue of Single Treasury Account (TSA) and how it affects economic development. TSA is an economic policy that ensures and aggregates all revenues and income of government into a single source called treasury and it is controlled by the central bank (CBN) of Nigeria. With its implementation has risen a lot issues which includes ethical as well as accounting issues. This paper succinctly discusses the TSA Policy and its impacts on economic development with a focus on ethical and accounting issues that have arisen in the face of ...

The governmental treasuries historically derived income from conventional sources available to administrations, augmented by extraordinary channels. Revenue emanated from taxation, administrative proceeds, public property income, and debt escalation-established conduits directing a segment of the national income to public authorities. This study retrospectively scrutinized the primary sources of Domestic Revenue Mobilization in Afghanistan, utilizing both primary and secondary data. Primary data was acquired from current Revenue Department employees at the Ministry of Finance (MoF), employing a survey research method through questionnaires. Secondary data, sourced from the World Bank, International Monetary Fund websites, journals, articles, and books, contributed to a comprehensive analysis. The findings indicated that Afghan government revenues historically emanated predominantly from customs duties on international movement of goods and services, and domestic taxation. Notably, natural resources, exemplified by foreign investments in copper mines, emerged as a pivotal revenue stream. It was essential to underscored that foreign assistance programs exhibited shortcomings in management, necessitating heightened supervision.

Availability of resources and readiness of potential areas is an important factor in the success of the regional autonomy era, but the availability of resources and the readiness potential in every area of the region is uneven causing fiscal stress. High fiscal stress reflects the regional effort to increase local taxes to reduce dependence on the central government level. Along with it, hopes to continue to improve its own admission it will be difficult to materialize when the allocation for capital expenditure is not increased because many more investors who want to invest in an area that has fulfilled its facilities. This research is intended to know the influence of growth capital expenditures and fiscal stress on the growth of local taxes. The study was conducted at the district/city in West Java province in 2008-2011 with a sample of 25 districts/ cities. The method used is the method explanatory. Statistical testing using multiple linear regression analysis, where the effect ...