Tax Revenues and Budget Allocation: The Impact of Tax Revenues on the Economy in Uzbekistan and Indonesia

Abstract

Tax revenues are a key source of money for any country’s economy. In this study, we compared how Uzbekistan
and Indonesia handle their tax systems, examined the growth rates of tax revenues in the countries, and how these
revenues are spent. The results show that Uzbekistan gets most of its tax money from direct taxes, while Indonesia
relies more on indirect taxes. Uzbekistan focuses its fiscal policy on government spending and infrastructure, whereas
Indonesia uses tax breaks to attract investors and boost economic growth. Both countries have their strengths and
challenges. We looked at how taxes are collected, how they affect the economy, and gave suggestions on better tax
reforms in both countries.