<![CDATA[With Ordinary Least Square (OLS), the main purpose of this study is to analyze impact of fiscal policy on the domestic saving in Indonesia. The data used in this study were data time series from 1975 to 2009 obtained from Badan Pusat Statistik, Bank Indonesia, Nato Keuangan Kementerian Keuangan and World Bank. As the dependent variable in this study is domestic saving. As the independent variables in this study are fiscal policy instruments (tax and government expenditure). As the control variable is interest rate, young dependency ratio, old dependency ratio, consumption and money demand. The result of this study shows that all of the fiscal policy instrument simultaneously significant influence on the domestic saving of Indonesia and individually the fiscal policy instrument significant influence on the domestic saving. Based on the value of elasticity and the level of significance of fiscal policy instrument, the government expenditure plays a big role in influencing the domestic saving of Indonesia]]>
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