The Causal Relation Between Revenue And Expenditure of Bangladesh

Published Online: 9 December 2021 || Published in Print: 28 December 2021

Authors

  • Jafrul Shahriar Jewel Department of Finance, University of Dhaka, Bangladesh Author

DOI:

https://doi.org/10.54728/2112091639050677

Keywords:

Government Expenditure, Government Revenue, Bangladesh Budget, VAR, Granger Causality

Abstract

Bangladesh is a developing country that has been experiencing budget deficits since its independence in 1971. It means the government spending has been exceeding the government revenue. This phenomenon calls for a study of government spending or expenditure and government revenue. This study tries to establish a causal relation between expenditure and revenue of governments of Bangladesh. To accomplish this, this study uses the Vector Autoregressive (VAR) model and the Granger Causality model on the data for the financial year from 1993-1994 to 2017-2018. The study reveals that in the context of Bangladesh, total revenue affects total expenditure, whereas total expenditure does not affect total revenue.

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Published

2021-12-09

Issue

Vol. 1 No. 1

Section

Articles

How to Cite

Jafrul Shahriar Jewel. (2021). The Causal Relation Between Revenue And Expenditure of Bangladesh: Published Online: 9 December 2021 || Published in Print: 28 December 2021. Journal of Financial Markets and Governance, 1(1), 65-72. https://doi.org/10.54728/2112091639050677