The Impact of Tax Revenue on Economic Growth: Evidence from Indonesia

Abstract

Theoretically and empirically explain that tax revenue has an impact on economic growth. This study is intended to conduct a review of tax revenue and economic growth in Indonesia. Research data was collected from the World Bank from 1972 to 2019. The results of this study indicate that tax revenues can significantly increase economic growth, and the correlation of tax revenues with economic growth is strong so that it is recommended for the government to continue fiscal policy with strict management to avoid the bad consequences of the policy.