The Effect of Fiscal Corruption on Government Tax Revenues and Government Expenditure:Case Study of Selected Developing Countries

The purpose of the present article is to investigate the impact of fiscal corruption on government tax revenues and government expenditure in selected developing countries. To do so, by using from panel data method and statistical information of years (2000-2007) for 31 developing countries, the impact of fiscal corruption and other independent variables on government tax revenue and government expenditure have been investigated. The results show that, following the increase in fiscal corruption reduce government tax revenue relative share of gross domestic product. That means a negative impact on government tax revenues, the results also indicate that because of increase in corruption index (reduced levels of corruption), government expenditure increases as a percentage of gross domestic product.