Abstract:
Fiscal policy is of great importance in a developing country like
Bangladesh. Tax revenue is not only a tool to implement the fiscal objectives but
also a factor to determine fiscal policy effectiveness. The main aim of the study is to
portray the contribution of tax revenue to economic growth, macroeconomic
stability etc which are intended to be achieved by fiscal policy. Following a time
series data from fiscal year 1989-90 to FY 2010-11. The prime finding of the study
reveals that the tax revenue strives to attain the fiscal goals. The study also portrays
the stimulating role of tax revenue to government to accomplish macroeconomic
activities.
