TAX REVENUE AND THE EFFECTIVENESS OF FISCAL POLICY: BANGLADESH PERSPECTIVE

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.