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A study of the Revenue and Expenditure Nexus This paper examines the Revenue-Expenditure nexus for Pakistan over a period of 39 years, from — It studies whether there exists causality between total revenue and total expenditure, as well as their components: At the end, the Granger causality is used to determine the existence of the causality.
The paper comes to find that for Pakistan, there is no causality between total revenue and total expenditure, total expenditure and tax revenue, development expenditure and tax revenue, current expenditure and tax revenue, and, total revenue and development expenditure thereby showing that the institutional separation hypothesis holds true in this context.
While these levels are usually estimated using past prices, the range of values obtained from a valuation model can be used to determine these levels, i.e., the maximum value will become the resistance level and the minimum value will become the support line. The most common explanation for the difference is that perceived service qual-ity is described as a form of attitude, a long-run overall evaluation of a product or service, whereas satisfaction is a transaction-specific evaluation (Bitner, ; Cronin & Taylor, ; Oliver, ; Parasuraman, Zeithaml, & . perceived organizational justice. The study took place at North East Railways in Iran. A random sample of and could determine the organisation’s survival (Drucker, ). The performance appraisal system (PAS) is important as a International Journal of Public Sector Management, Vol. 17 Iss: 1, pp. 48 –
However, there does exist a positive uni-directional causality running from Total Revenue to Current Expenditure, Non-Tax Revenue to Total Expenditure, Development Expenditure and Current Expenditure, which suggests that the government should target revenues before spending, i.
Within economics, there are variations amongst different economists and school of thoughts on the understanding and handling of problems. In this context the Neoclassical, Keynesian and Ricardian paradigms hold the greatest significance.
Interest rate is then required to rise in order for the money market to be at equilibrium. This view does not hold importance in the context of this paper because given the current economic conditions, such a persistent deficit would crowd out the savings, creating havoc in the economy.
According to the Keynesian school of thought, an individual has a high propensity to consume out of the current income, therefore a tax reduction would have a spontaneous and substantial impact on the aggregate demand.
In this school of thought, the budget deficit was regarded as the definitive propellant of economic growth; these economists believed that a high rate of employment and stability could be achieved through appropriate maneuvering of the government budget.
The Ricardian school of thought explains that individuals save over generations by transferring resources and therefore consumption could be a function of these dynamic resources.
More recently these deficits are being blamed for various economic problems, including high inflation rates, unemployment, stagnant economic growth, stock market crashes, high interest rates and balance of payment issues as well as exchange rates and other economics concerns.
A budget deficit when viewed as a percentage of the GDP decreases as the economy progresses. This is because increased tax revenues coupled with a high employment lead to economic growth and therefore lessen the need for government support, especially for welfare purposes.
Governments counter these budget deficits by reducing the government taxes and increasing the taxation, hence promoting economic growth. The Ricardian equivalence model is built on the notion that increasing the amount a government borrows would not have impact consumer expenditure since these rational consumers would predict tax cuts and they realize that this higher expenditure would be penalized later.
In short, this means that a cut in taxation, which is financed by further borrowing, should have no affect on the aggregate demand. This is because the rational individual realizes that extra consumption today would cost them higher future taxation and the concept of consumption smoothing comes into play.
If this model is assumed to be an accurate depiction of the ground reality then it makes fiscal policy redundant. Contrary to the Barro-Ricardo equivalence theorem, budget deficits and their proceeding fiscal policy measures do matter substantially.
Whether and how the revenues should be increased to finance the budget or whether the expenditures should be reduced is a major question faced by the decision makers. In order to answer this question, it is imperative to know whether a causal relationship exists amongst the two factors.
Whether increasing resource mobilization to increase revenues also increases expenditure or is it the increased expenditure on resource mobilization, which increases revenues, is the key question in this context.
This continuous borrowing and accumulation has had detrimental effects on the economy, leading to internal and external debt. Moreover, factors such as exchange rate, trade gap and the balance of payments have also been negatively impacted by this increasing debt.
Our study objective is to answer the fundamental question of budget deficit financing by investigating the variables causing the deficit.
The paper observes, through empirical testing the data, whether there exists a unidirectional or bidirectional relationship between the variables, of budget deficit, both in the long run and short run and whether this is positive or negative causality.
The study aims to identify the type of causality that exists amongst the variables, or whether one exists at all.
This is of core importance as Revenue and Expenditure are the foundations that set course for the budget policy. The study also decomposes these variables into their constituents, that is, non-tax and tax revenues as well as current and development expenditure. Eventually, this paper makes some conclusion regarding what policy should the government of Pakistan adopt while setting its Revenues and spending targets based on the results of the econometric analysis that it employs.
It is hoped that these will aid in policy making and will rid the country of the nuisance that the budget deficit holds.In a multiplicative process, the one value that can be substituted for each of a set of values to give the same "overall effect" is the geometric mean, not the arithmetic mean.
As money tends to multiplicatively ("it takes money to make money"), financial data are often better combined in this way. While these levels are usually estimated using past prices, the range of values obtained from a valuation model can be used to determine these levels, i.e., the maximum value will become the resistance level and the minimum value will become the support line.
Journal of Tropical Medicine is a peer-reviewed, Open Access journal that publishes original research articles, review articles, and clinical studies on all aspects of tropical diseases.
Articles on the pathology, diagnosis, and treatment of tropical diseases, parasites and their hosts, epidemiology, and public health issues will be considered. This study uses ratio analysis to examine salient financial trends within four major sectors of the hospitality industry for the period – namely lodging, .
A steadily growing body of evidence from the social sciences demonstrates that regular religious practice benefits individuals, families, and communities, and thus the nation as a whole. Service Personalization and Loyalty A. Dwayne Ball University of Nebraska - Lincoln, [email protected] We show that the effect of service personalization on loyalty exists, but that the effect is not Other constructs in the model (expectations, perceived value, and perceived quality) are used to explain satisfaction, not loyalty, and need.