Government Revenue Research Articles

Trade Facilitation as a Catalyst for Government Revenue Enhancement: Exploring the Synergies Between Trade Efficiency and Tax Collection

Customs administrators worldwide are mandated to mobilize national revenue collections through the assessment and collection of applicable duties and taxes on all imports and exports. One of their primary concerns following the ratification of the Trade Facilitation Agreement is the need to optimise revenue collections while simultaneously upholding trade facilitation. This research assesses trade facilitation implications on government revenue mobilization in developing countries with a particular emphasis on Zimbabwe. The paper adopts a qualitative approach, capturing several subjective elements including the examination of the Critical Success Factors for enhanced revenue collection as well as the evaluation of trade facilitation as a solution to customs revenue leakages. Purposive sampling was employed to collect data from employees working in the Customs Division at the Zimbabwe Revenue Authority. Eighty questionnaires were distributed to participants working in Beitbridge, Chirundu, Forbes border posts and the Robert Mugabe International Airport targeting Customs Senior Managers, Customs Middle Managers, Revenue Supervisors and Revenue Officers as key respondents. Data was analysed using the Statistical Package for Social Sciences version 29. This analysis focused on four dimensions of trade facilitation, which includes port efficiency, customs environment, regulatory environment, and electronic-business. The findings indicate that trade facilitation reforms, when executed appropriately in conjunction with enhancements in electronic-business, port efficiency, customs environment and the regulatory framework, can effectively augment revenue collection. Regulatory environment improvements are key in influencing increasing revenue collection and should be prioritised in resource allocation for the achievement of best possible outcomes. We recommend ‘continuous refresher training’ on trade facilitation awareness targeting all stakeholders in ports of entry, accompanied by the implementation of robust risk management strategies as well as intensified implementation of integrity management tools.

Income inequality, unemployment, and government transfer: what do their dynamics tell us

PurposeIn this research, we explore the dynamics among measures of income inequality in the USA, male and female unemployment rates and growth in government transfer using time series data.Design/methodology/approachThis research adopts a macro-econometric approach to estimate a structural VAR model using time series data.FindingsOur structural impulse responses found that growth in government transfer increases unemployment rates for both males and females. Female income inequality declines with increased government transfer. When the female income ratio rises, we observe that government transfer outlays fall over the forecast horizon. Variance decomposition finds that growth in government transfers is impacted by the male unemployment rate relatively more than the female unemployment rate. This research, therefore, suggests gender-specific government transfers to reduce income inequality. This, in effect, may reduce government transfer outlays over time.Practical implicationsThis research, therefore, suggests gender-specific government transfers to reduce income inequality. This, in effect, may reduce government transfer outlays over time.Originality/valueThis research investigates the dynamics among income inequality, government transfer and unemployment rates. There is a dearth of research articles that adopt a macro-econometric in this area.

Fiscal policy and deforestation

We investigate the impact of fiscal policy on deforestation in the Brazilian Amazon and Atlantic Forests. We first construct a theoretical dynamic model to examine the effects of government spending and tax revenues on the environment. We then run a VAR model to test the implications of fiscal policies on Brazilian deforestation, using data from June 1998 to May 2022. Our results suggest that government expenditures reduce deforestation in both forests. Moreover, deficit-inducing and balanced-budget fiscal policy shocks have dampening effects on deforestation, with the latter being more effective. This is good news for developing countries like Brazil. They can combat deforestation through fiscal policy in a way that doesn't worsen their fiscal situation. Our findings were unaltered when we considered the effects of a simulated fiscal policy based on spending on public goods only (social assistance, science and technology, defense, education, health, national security, and transportation).

Revisiting fiscal deficit sustainability and revenue-expenditure nexus in India

The COVID-19 epidemic has brought to the emergence of fiscal sustainability as an exceptionally challenging issue for both emerging and advanced economies. In this context, it is imperative to assess the sustainability of fiscal deficit in India for the Central and State level for the period 1970–71 to 2021–2022 and 1973–74 to 2021–22, respectively. Furthermore, the study also seeks to establish the cause-and-effect relationship between government expenditure and revenue. The application of Gregory-Hansen cointegration test supports sustainability of fiscal deficits for Central and State governments individually. Additionally, the ARDL model for cointegration indicates that both governments exhibit "weak" sustainability of the fiscal deficit. Finally, the Toda-Yamamoto Granger non-causality test provides evidence in favour of the "spend-tax hypothesis" for both governments. In this backdrop, the present study posits that it is essential for governments to implement fiscal consolidation and prudent fiscal policies in order to reduce the magnitude of the budget deficit, optimise the execution of monetary and exchange rate policies, and foster development driven by the private sector. This approach is crucial to ensure long-term fiscal sustainability and economic stability in India, especially aftermath of the COVID-19 pandemic.

Analisis pajak restoran dan pajak hotel terhadap pertumbuhan pendapatan asli daerah Kota Manado

Taxes are the main source of state revenue. Regional taxes are divided into two parts, provincial taxes and district/city taxes. According to Law no. 1 of 2022 restaurant tax and hotel tax are included in district/city taxes. Restaurant tax and hotel tax are important contributors to the PAD revenue of the city of Manado. The aim of this research is to see the contribution of restaurant taxes and hotel taxes to Original Local Government Revenue (PAD) in Manado City from 2021 to 2023 with contribution percentages in accordance with applicable regulations. This type of research uses qualitative descriptive methods. Based on the results of research conducted at the Manado City Regional Revenue Agency, the percentage of restaurant tax contribution to PAD was 97.26% and the percentage of hotel tax contribution to PAD was 68.3%. The realization of restaurant taxes and hotel taxes increases every year. This shows that restaurant tax makes the largest contribution to Manado City's Original Regional Income.

A Comprehensive Review of Tax Policy Changes and Tax Revenue in Kenya

Government revenue is crucial for fostering economic growth, especially in emerging economies where financial autonomy matters. Mobilising this revenue is key to achieving the United Nations Sustainable Development Goals (SDGs) focused on productivity and inclusive growth. This study analyses Kenya's tax revenue trends from 2001 to 2021, particularly the impact of tax policy reforms on the tax-to-GDP ratio. The findings reveal a significant increase in Kenya's tax revenue from 182,418 million shillings in 2001 to 1,692,662 million shillings in 2021, reflecting the effectiveness of tax reforms. It notes a shift towards direct taxes, which increased both in absolute terms and as a portion of total revenue, indicating improved compliance and administrative efficiency. Key reforms, such as the Tax Modernization Programme and the digital iTax system, enhanced revenue collection by improving compliance and tax base widening. While indirect taxes have traditionally dominated, the gap with direct taxes has narrowed, leading to a more balanced revenue structure. The study also highlights challenges, including political disruptions in 2007 and the economic effects of the COVID-19 pandemic in 2020, emphasising the need for resilient revenue strategies. Ultimately, the research concludes that continuous tax policy reform and improved administrative efficiency are essential for Kenya's fiscal sustainability and broader economic development goals.

Nurturing Environmentally Responsible Practices Using Top Management Role on Effective Training and Supplier Orientation to Promote Green Logistics Management Practices

Purpose: This study investigated top management role on effective environmental training, using supplier environmental orientation to promote green logistics management practices. This was a deductive study since the positivist worldview was used to address the query about the relationship between variables. Methodology: The study used a quantitative method, which is consistent with the paradigm that was chosen. Data from the study population, which included Ghanaian manufacturing, agriculture, mining, and extraction companies, was gathered through questionnaires. The target population's size was ascertained using the Ghana Revenue Authority (GRA) database. The scientists used the Krejcie and Morgan (1970) sample size estimation table. Given the above, a sample size of 300 firms was selected from a total of 1178 respondents. The inclusion of descriptive statistics, such as Mean (x̄) and Standard Deviation (SD), contributes to a comprehensive understanding of the data. The application of SPSS software, version 25, for data analysis underscores a commitment to using reputable tools in the research process. Findings: The conclusion drawn from the results yielded robust reputable evidence in support of the positive relationship between environmental training and green logistics management practices. Unique Contribution to Theory, Policy, and Practice: Management should prioritize partnerships with suppliers who align with sustainable practices and contribute to the adoption of green logistics management practices within the supply chain.

The effects of a risk-based approach to tax examinations: evidence from a tax pilot programme in Tanzania

AbstractTechnical assistance and increased use of ICT in tax administrations hold promise for greater revenue collection. Yet, the evidence on how these activities work in the real-world circumstances of developing countries is scant. The paper attempts to fill this gap by evaluating an intervention undertaken jointly by the Finnish and Tanzanian revenue administrations. The programme introduced a new risk-based case selection method for enhancing the effectiveness of firm tax examinations in Tanzania complemented by supplementary staff training and developing management practices. Our results, stemming from a difference-in-differences analysis and administrative data from the Tanzanian Revenue Authority, indicate that the intervention increased the corrected amount of taxable income by approximately 20% during the first year of the new approach.

Assessing The Effects Of Government Expenditure And Tax Revenue On Economic Growth In Seven ASEAN Countries

Background: This study investigates the Assessing the Effects of Government Expenditure and Tax Revenue on Economic Growth in Seven ASEAN Countries namely Brunei Darussalam, Indonesia, Myanmar, Malaysia, Philippines, Singapore and Thailand over a lengthy temporal prospect from 1980 to 2022. This research aims to deliver a nuanced understanding of how these government expenditure and tax revenue dynamics effects on the economic growth of these regions. Spanning over four decades, the study investigates into the multidimensional extents of government expenditure and tax revenue and its effects on economic growth, presenting a comprehensive exploration of the long-term strategies besides their implications for economic growth. This research covers both short-term and long-term dynamics, thus enhancing the robustness of this investigation. Moreover, the findings contribute to the hypothetical discourse by enriching the understanding for the effects of government expenditure and tax revenue on economic growth within these regions. The outcomes of this study embrace the potential to appraise evidence-based policy decisions, academic explorations, and the broader recreation of sustainable and inclusive economic development contained by these ASEAN regions. The focus of this study has investigated the effectiveness of government expenditure and tax revenue measures in promoting economic growth in seven ASEAN countries. These studies utilize the panel Autoregressive Distributed Lag (ARDL) approach and find that government expenditure was statistically significant in these ASEAN economies. It is important to note that the effectiveness of fiscal policy in promoting economic growth can vary across countries and over time.

The Impact of the Oil Industry on the Economic Development of Nigeria

The study examined the impact of the oil industry on the economic development of Nigeria. The Nigerian petroleum industry dominates the Nigerian economy in terms of profits and revenue. According to the recent Petroleum Export Organization (OPEC) report, Nigeria currently ranks as the world's tenth-largest crude oil reserves and also the world's fifteenth crude oil producer. According to national statistics, the industry generates for the country more than 95% of the country's external revenue and about 80% of government revenue. Secondary data collected on the economic variable used in the study comes from the World Bank, worldometer, and the International Monetary Fund, Statistical Review of World Energy, Central Bank of Nigeria (CBN) Statistical Bulletin, CEICDATA (Organization of the Petroleum Exporting Countries) from 1990 to 2016. An augmented Dickey-Fuller unit root test, and autoregressive distributive lag (ARDL) method, and ARDL related to the test co-integration with various other diagnostic techniques were used for the study. The result reveals that oil production contributed to economic development, but the consumption and export of crude oil did not contribute to the improvement of the Nigerian economy. The study concluded that the government should implement policies that would encourage the private sector to actively participate in the crude oil sector and sectors of the economy. In addition, the government should use the revenue generated from oil to invest in other national sectors such as agriculture and manufacturing to expand the revenue stream of the economy

Assessing Fiscal Sustainability with Panel Unit Root, Cointegration, and Granger Causality Tests: Evidence from the Broader Groups of Countries

Abstract The question of fiscal sustainability of countries has become one of the central topics in economic policy, especially in times of increasing public debts. One way to assess fiscal sustainability is to examine compliance with the intertemporal budget constraint, which involves testing the stationarity of government revenues and expenditures, the primary budget balance, and the first differences of public debt. Part of this approach includes testing cointegration and causality among different pairs of variables. Under this approach, the paper is focused on both first- and second-generation panel unit root tests, cointegration, and Granger causality test. This paper focuses on assessing the fiscal sustainability of four panels of countries divided by continents: Europe, Asia and Oceania, Africa, and Latin America, the Caribbean, and North America. It has been found that fiscal sustainability is present in all the broader groups of countries considered but in a weak form. Fiscal sustainability was confirmed when considering a constant in calculations, while deviations were observed among groups of countries when both a constant and trend were considered. The study serves as a starting point for a more extensive analysis of fiscal sustainability. For more accurate findings, it would be necessary to categorize countries into smaller and economically more homogeneous groups and analyze them using other fiscal sustainability methods as well.

Economic policy mix: An imperative for monetary credibility in Nigeria

This research examined the economic policy mix as an imperative for monetary credibility in Nigeria, covering a study period of 35 years spanning from 1988--2022. The paper sourced data from the Central Bank of Nigeria (CBN) Bulletin (2022). The study used the autoregressive distributed lag methodology. This study revealed that government expenditure (GOEX), tax revenue and greater trade openness significantly improve monetary credibility. However, lower monetary policy rates (MPRs) enhance monetary credibility. Moreover, the broad money supply (BMOS) does not significantly affect monetary credibility. The paper concludes that fiscal discipline, effective tax revenue collection strategies, low MPR, and high trade openness are crucial for maintaining monetary policy credibility. Consequently, the Nigerian government should prioritize policies that improve tax revenue collection efficiency and compliance. While ensuring that government-awarded projects undergo postproject audits, the emphasis of government expenditures should be on improving the educational sector and healthcare sector.

On the design of price caps as sanctions

A ceiling has been imposed on the price at which Russian producers can sell oil. The price cap is intended to reduce Russian government tax revenue without increasing the world price of oil excessively. We show that such price caps can have counterintuitive effects. A price cap can induce sanctioned producers to increase their output, thereby increasing their revenue. This increased output can also reduce the world price of the homogeneous product supplied by sanctioned and non-sanctioned producers. The welfare-maximizing price cap, which is often well below the unrestricted world price, can increase welfare substantially.

Does capital flight set Africa as the seat of darkness? Linking capital flight and energy poverty

Despite the fact that capital flight is a scourge for African economies, no study, to the best of our knowledge, has analyzed its effects on energy poverty. This study aims to fill this gap in the literature by providing one of the first empirical studies of the effects of capital flight on energy poverty. The present study focuses on a panel of 30 countries in Africa over the period 2000–2018. We use Principal Component Analysis (PCA) to construct an energy poverty indicator. Results suggest that capital flight increases energy poverty in Africa. This result is robust when controlling for endogeneity. Additionally, good institutional quality helps mitigate the negative effects of capital flight on energy poverty. Further analysis allows us to identify income inequality, government spending and unemployment as the channels through which capital flight influences energy poverty. Policy wise, better control of capital flows based on appropriate institutional settings should reduce energy poverty in Africa.

Governmental Revenue Compensation during COVID-19: Did Firm Resources and Institutional Factors Explain Who Received It?

Governmental Revenue Compensation during COVID-19: Did Firm Resources and Institutional Factors Explain Who Received It?

Belediye Yönetimlerinin Gelir ve Harcama Politikaları Nasıl Olmalıdır?

Revenue and expenditure policies of municipal governments should be determined by taking into account the principles of sustainability, efficiency and justice of local governments. The main purpose of these policies is for municipalities to provide public services effectively and increase the welfare of the society. Revenue policies determine the resources that municipalities can use to meet their budget needs. These sources generally consist of local taxes, fees, transfers and other revenue sources. It is important that income policies are fair and burden different segments of society in a balanced manner. At the same time, a reliable basis should be created for budget planning and long-term investments by ensuring the continuity and predictability of revenues. Expenditure policies determine how municipalities will use these resources. Expenditures should be aimed at increasing the efficiency of municipal services. In this context, investments should be made in priority areas, projects that will increase efficiency should be prioritized and waste of resources should be prevented. In addition, spending policies should be transparent and shared with the public so that the society can receive the services they expect from municipalities and participate in management processes. In this study, the revenue and expenditure policies of municipalities were examined by comparative analysis method and some determinations were made about how the municipalities' revenue and expenditure policies would be. In this context, the revenue and expenditure policies of municipal governments should be regulated in a balanced and fair manner to meet local needs, ensure sustainability and increase social welfare. Correct implementation of these policies will strengthen the effectiveness of local governments and their trust relationship with the society. Key Words: Local Administrations, Municipalities, Revenue Policies, Expenditure Policies, Participatory Budget Jel Code: E62, H71, H72

Econometric Analysis of South Africa’s Fiscal and Monetary Policy Effects on Economic Growth from 1980 to 2022

This study examined South Africa’s economic growth rate from 1980 to 2022 through an econometric analysis of fiscal and monetary policies. The study sought to investigate the relationships between the economy’s growth rate and various fiscal and monetary policy variables, taking into account different economic approaches such as Keynesian, monetarist, and Wagner’s perspectives. The methodology used consisted of data preparation, multiple unit root tests, Autoregressive Distributed Lag (ARDL) cointegration analysis, diagnostic tests, and pairwise Granger causality analysis. The empirical analysis found a long-term cointegration among the economic growth rate, government debt, expenditure, and revenue in fiscal policy, though government debt and expenditure were not statistically significant. Contrary to economic theory, increased government revenue had a negative correlation with economic growth. There was no long-term relationship found between the economic growth rate and monetary policy variables such as the official exchange rate, inflation rate, real interest rates, and M3 money supply. Pairwise Granger causality tests revealed a one-way relationship between government spending and economic growth, providing support to the Keynesian approach to fiscal policy. This study also discovered evidence that economic growth Granger-causes inflation, implying that economic growth may have predictive power for inflation, consistent with the demand-pull inflation hypothesis. However, no direct predictive relationships were found between the selected monetary policy variables and economic growth, supporting the long-run theory of monetary neutrality. This study suggests evaluating spending, managing inflation, implementing reforms, closing infrastructure gaps, encouraging investment, and ensuring fiscal sustainability.

Impact of different CO2 price paths on the development of the European electricity system

In energy system transformation studies, the assumption of linearly rising CO2 prices is common and based on the decreasing issued European allowances (EUA). The actual auction price for allowances is influenced by market dynamics, resulting in non-linear variations in CO2 prices due to the possibility of banking allowances. This study explores the impact of non-linear CO2 price trajectories on the European electricity market. Various scenarios, such as increasing prices with the market interest rate, early price peaks, collapse, or fluctuations, are examined until 2030. The study quantifies the effects on power plant investments, profitability, consumer costs, and government revenues. The findings reveal that early and high price signals lead to an earlier transition with 7 % more wind power plants but at 4 % higher costs. Conversely, lower initial prices delay power plant investments in wind power plants by 6 % and result in 21 % higher emissions. Compensation for climate impact costs can yield a positive cost-benefit analysis in scenarios with early and high price signals when emissions are avoided through mechanisms like the Market Stability Reserve (MSR).

Impact of fiscal regulation on regional carbon intensity: assessing the carbon emission reduction effect of transparent government revenue and expenditure

ABSTRACT Fiscal regulations enhance fiscal compliance and reduce undue government intervention in economic performance, which may have important implications for low-carbon development. However, few empirical studies have investigated the impact of fiscal regulations on carbon intensity. Based on data from 278 cities in China from 2005 to 2020, this study constructed a difference-in-differences model using the release of the new Budget Law to investigate the impact of fiscal revenue and expenditure regulation on regional carbon emission intensity. The empirical results indicated that fiscal regulations can significantly reduce the intensity of carbon emissions. The mechanism tests indicate that fiscal regulation can optimize the allocation of local governments’ fiscal revenues and expenditures and improve infrastructure and innovation. Heterogeneity analyses indicate that the effect of fiscal regulation on reducing carbon emission intensity is more obvious in regions with high historical emissions and a high proportion of polluting industries. Based on the empirical results, the government should continuously improve fiscal transparency and the efficiency of fiscal fund use to reduce the impact of unreasonable fiscal revenue and expenditure on carbon emissions intensity.

Pengaruh Kebijakan Moneter dan Fiskal terhadap Pengangguran di Indonesia

The purpose of this study is to analyze the impact of monetary policy as seen from the BI Rate and the money supply (M2, and fiscal policy as seen from government spending and tax revenue in influencing the unemployment rate in Indonesia. The approach used in this research is quantitative. The data used are the BI Rate, the money supply (M2), government spending, tax revenue and unemployment in the form of time series data in an annual form from 1995 to 2019. The method used in this study is the Vector Auto analysis model. Regression (VAR). The stages used in this research test are a stationarity test, optimum lag test, VAR stability test, impulse response test, and variance decomposition test. The results of the impulse response indicate that the unemployment variable responds most to the shock of the interest rate variable (monetary policy) compared to other variables. The results of variance decomposition indicate that the contribution given by the BI Rate to the unemployment rate is the most significant relative to the contribution given by the variable money supply (M2), government spending, and tax revenue.