The effects of tax instability on budgeting and financial management in developing countries

Budgeting and financial management in developing countries is made particularly difficult by fluctuations in revenues. This paper considers the variety of factors that underlie such revenue variability, including policy, economic and administrative phenomena. Empirical analysis of government revenue in stability in both Bangladesh and Burk in a Faso is conducted to document the extent of the issue and to suggest how such analysis can shed light on the underlying causes of revenue fluctuations.