Role of Taxation in Formulation of Fiscal Plan (Case study of Pakistan)

Abstract

Research on the role of taxation in formulation of fiscal plan was started from the idea of data collection from the ministry of finance government of Pakistan for the purpose of checking the inter correlation and degree of association between tax collection and dependent variables of fiscal plan: development expenditure, non-development expenditure, by applying Pearson 1-tailed test and linear regression for checking the above effects, moreover researchers found that tax collection is highly correlated with development as well as non-development expenditure, and tax collection is positively associated with the development and non-development expenditures.