Journal of International Conference Proceedings
Vol 4, No 3 (2021): 2021 WIMAYA International Conference of Economics and Business

Analysis of the relationship between Tax Revenue and Government Expenditures in Indonesia

Muhammad Birrul Alim (University of Jember)
Aulia Pamasa Setiyantono (University of Jember)
Suci Nurul Zakiah (University of Jember)



Article Info

Publish Date
14 Dec 2021

Abstract

In reality, government spending in emerging nations has been steadily increasing from time to time. Controlling it through fiscal policy, such as tax collections and government expenditure, is one of the measures that may be implemented. The primary goal of this study is to determine the magnitude of the link between tax income and government spending in Indonesia from 2000 to 2020. The World Development Index and the Central Bureau of Statistics are the primary data sources used by the researcher to attain this study goal. The researcher utilized the Vector autoregressive (VAR) technique and the Granger causality test to determine the link between tax income and government spending. Because the coefficient of determination is 65.41 percent, which is far from 100 percent, and the two variables, namely tax revenues and government expenditures, are not affected by the clause relationship, the results of this study indicate that the trend of the government expenditure ratio is less stable. The two variables do, however, have a short-term link, and there is no long-term balancing relationship between government spending and tax income.

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Journal Info

Abbrev

JICP

Publisher

Subject

Humanities Decision Sciences, Operations Research & Management Electrical & Electronics Engineering Industrial & Manufacturing Engineering Languange, Linguistic, Communication & Media

Description

JICP is proceedings series that aims to publish proceedings from conferences, in the fields of economics, business, and management research. All proceedings in this website are open access, which means the published articles are permanently free to read, download, copy, and distribute. The online ...