The data tries to answer whether the debts taken by four different government regimes show that a major amount has been spent on fiscal development which is the biggest spending component.
We have articulated four main variables, total expenditure, total revenue, fiscal development and tax revenue. The variables of total expenditure and total revenue sum up both federal and provincial level values and consist of variable divisions. Our model based its figures considering that revenue proceeding from previous years would be employed for continuation of development in long-run.
Time series of real values for all the four major variables were constructed in order to adjust for the inflated prices from 2000-2019. CPI indicator was used as the main conversion tool which was calculated through regression formula since we had two different base years. One of the main reasons to convert for inflated prices was to compare the regimes of all four governments. Variations of comparison analyses is constructed in order to cover all sorts of correlations and figure out significant changes of particular variables in respective governments.
Variables used:
• Total expenditure: it is total of fiscal development and other (for example, defense, current subsidies, mark up payments etc.)
• Total revenue: it is total of IMF and tax revenues
• Fiscal development: total expenditure on development
• IMF loan: debt taken in respective years
Sources used
• For IMF
https://blogs.tribune.com.pk/story/81864/22-loans-in-61-years-pakistans-unwavering-habit-of-going-to-the-imf/
• For other variables Economic Surveys from 1999-2019 have been used