IMPACT OF STATE BUDGET REVENUE ON ECONOMIC GROWTH: THE ROLE OF BANK CREDIT

Abstract

The state budget is one of the activities to nurture the apparatus and the economy in each country. Economic development is closely linked to public investment and therefore, the country cannot lack state financial resources. Therefore, nurturing revenue sources becomes one of the important goals to help improve the country's investment and development activities. The objective of the study is to assess the impact of government budget revenue on economic growth under the impact of bank credit in Vietnam in the period 2000 to 2023. The study used the regression method by least squares (LS) and simultaneous robust least squares (RLS) to assess the influence of factors. The research results show that the government budget revenue has a positive impact on economic growth. However, domestic credit from banks to the private sector has not brought benefits to the economy, which raises the solution to improve the efficiency of capital allocation from the banking system.