Kuwait-University-Journal-of-Law-header
Search
Journal of Law

Previous Issues

Advance Search
Year : From To Vol
Issue Discipline:
Author

Volume :28 Issue : 104 2002      Add To Cart                                                                    Download

THE RELATIONSHIP BETWEEN GOVERNMENT REVENUE AND EXPENDITURES IN SAUDI ARABIA

Auther : By: Dr. Abdullah H.Al Batel

Public sector plays a dominant role in developing countries, especially when the goal is to stimulate the economy and use government budget to establish and pursue national objectives.

This study attempts, by using recent developments in econometrics, to establish the causal relationship between government revenue and expenditures.  That is which causes what is government expenditure driven by increases in its revenue?  Or that revenue caused by increases in government expenditures. Or that there is no relationship between them.  This is an empirical issue since there is no consensus on a theoretical base and that most empirical results are mixed.

This study asserts that in the case of Saudi Arabia, the results show that there is one-way direction of causality running from government revenue to its expenditure.  This finding is important for policy-makers since the government for the past 16 years has been running a huge deficit in some years.  Thus, these findings have important implications for controlling and may be reducing budget deficit and in turn national debt.

Introduction:

Public sector plays a dominant role in developing countries, especially when there is a desire to stimulate and guide economic and social development.  Thus Schick (1990) suggests that over time government budget has taken on functions so that it does much more than allocate money to programs and agencies, governments use it to establish and pursue national objectives.

Journal of Law
Journal of Law

You are Visitor No.

75396

Journal of Law
Journal of Law
Tell your friendsJournal of Law
Journal of Law

Last Updated

May 18, 2017

Journal of Law
Journal of Law
Journal of Law

Please enter your email Here to receive our news

Journal of Law