TY  - JOUR
T1  - The Impacts of Fluctuations in Public Revenue and Expenditures on Economic Growth in
Pakistan: An Impulse Response Approach
AU - Ur Rahman, Zia AU - Abbas, Musarat AU - Riaz, Madiha AU - Ur Rahman, Saeed 
JO  - Research Journal of Applied Sciences
VL  - 16
IS  - 5
SP  - 183
EP  - 191
PY  - 2021
DA  - 2001/08/19
SN  - 1815-932x
DO  - rjasci.2021.183.191
UR  - https://makhillpublications.co/view-article.php?doi=rjasci.2021.183.191
KW  - Direct tax
KW  -productive expenditure
KW  -gross domestic product
KW  -Ramsey RESET test and impulse response function
AB  - Allocation of public revenue among productive
and non-productive expenditure and its impact on GDP
are not extensively studies in Pakistan. In this study, we
examine the relationship between government revenue,
productive and non-productive expenditure and economic
growth and sustainability over the period of 1978-2018
with the help of Johansen co-integration, error correction
test and Impulse Response Function. The result of the
study affirms a significant long run and short run
relationship between the fiscal instruments and the
economic growth in Pakistan. Finally, impulse response
illustrates that when direct tax is higher than GDP,
productive and unproductive expenditures are also
increased. It has also been observed some unproductive
expenditures smooth the way for the economic growth.
For future better implication of fiscal policy and to
achieve economic growth and development government
should take steps to increase its revenue through taxes.
Tax collections can be increased by proper utilization of
tax revenue and by educating people that tax is the
responsibility not the penalty.
ER  -