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

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