Role of Tax Revenue, Non-tax Revenue, and Foreign Aid to Increase the Size of Budget in Nepal | ...

The aim of this research is to determine the effect of tax revenue, non tax revenue, and foreign aid on the size of Nepal's budget.

Methods: Descriptive, empirical, and exploratory research designs were used in this analysis. To find long-run relationship, effects, short run causality, and granger cause between the pairs of variables, the Johnsen Co- integration Test, VECM, Wald Test, and Granger Causality Test are used. Results: Tax income, non-tax revenue, international assistance, and the budget are all intertwined or have a long-term relationship. The VECM result shows that tax income, non-tax revenue, and foreign assistance are all well-fitting, and they are all important in explaining the scale of Nepal's budget. There was short-run causality between budget size and tax revenue and budget size and foreign aid in Nepal, but there was no short-run causality between budget size and non tax revenue. Between the two factors, the granger trigger could not be identified. Implications: It appears to raise tax revenue while reducing reliance on foreign assistance. Limitations: This research was focused on secondary data spanning 40 years, from 1979/80 to 2018/19 fiscal years.Tax income, non-tax revenue, and international assistance are the only three factors that influence th budget scale. As a result, further research is needed using different methods and variables. Originality: The author was not influenced by other people's research or observations.

Please see the link - https://www.journalajarr.com/index.php/AJARR/article/view/30341