Published October 19, 2023 | Version v1
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The Relationship between Budget Revenue - expenditure and Inflation in Vietnam: Viewed from the Results of Quantitative Analysis

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  • 1. Sir Winston Churchill Secondary School
  • 2. Lawrence S. Ting Memorial School

Description

The research examines the relationship between budget revenue expenditure and inflation in Vietnam, with time series data on budget revenue expenditure and the consumer price index (CPI) (representing the inflation variable in Vietnam). Data were collected from the International Financial Statistics (IFS-IMF), General Statistics Office (GSO) in the period of 2005-2022. The author used Eview software to build a linear relationship log-log of budget revenue - -expenditure and CPI in the case of the Vietnamese economy. Quantitative analysis results show that when budget revenue increased by 1%, CPI increased by 0.249674%, when budget expenditure increased by 1%, CPI increased by 0.298316%. Raising budget revenue to raise budget expenditure will result in higher inflation during the research period in Vietnam. From the theoretical basis, research overview, and quantitative analysis results, the research team makes some recommendations for fiscal policy in Vietnam in the current context.

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