• Priyanka Chawla
• Prof. Pravin Saxena

This study examines the nexus between tax revenues of the government and expenditures in India by using cointegration test methodology during 2000-01 to 2015-16. It tests two hypotheses relating to the revenue-expenditure nexus, i.e. tax-spend hypothesis, spend-tax hypothesis. The nexus is studied at centre & state (combined level). The study establishes co integrating relationship between government expenditure and tax revenue which suggests a long-run relationship between the variables. The results show that there is one-way causality running “spend and tax “both in short-run as well as in the long-run. This result justifies the operation of spend- tax hypothesis.

Tax Revenue, Expenditure, Co-integration, Granger Causality Test, Spend-tax

"AN ANALYSIS OF CAUSALITY BETWEEN GOVERNMENT TAX REVENUES AND EXPENDITURES IN INDIA", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 1, page no.586-596, January-2019, Available :http://www.jetir.org/papers/JETIR1901984.pdf

"AN ANALYSIS OF CAUSALITY BETWEEN GOVERNMENT TAX REVENUES AND EXPENDITURES IN INDIA", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 1, page no. pp586-596, January-2019, Available at : http://www.jetir.org/papers/JETIR1901984.pdf