Impact of Tax Reforms on National Savings, Tax Revenues and Budget Deficit

Abstract

Present research was conducted to study the impact of tax reforms on national savings, budget deficit and tax revenues. This study was based on time series analysis. Data was collected on yearly basis starting from 1984 to 2008. It was hypothesized that tax reform will have impact on national savings, budget deficit and tax revenues. Moreover, GDP, government expenditures and remittances were also considered to study their impact on selected dependent variables. Data was analyzed using regression analysis which reflects that tax reforms have significant impact on selected dependent variables. Other independent variables taken have also significant affect at 5% level of significance. Using curve estimation technique, the trend of dependent variables over the period of time (1984-2008) was also checked.