The main objective of the study was to investigate the relationship between government revenue and government expenditure in Uganda. The study employed monthly secondary data covering the period from July 2007 to January 2018 and the data was got from the Uganda Bureau of Statistics (UBOS) in conjunction with the Ministry of Finance Planning and Economic Development (MoFPED). It was discovered that there were significant causal relations between government revenue and expenditure on different sectors in the economy. All in all, there was a statistically significant relationship between government revenue and government expenditure. Government revenue and government expenditure as well follow the fiscal synchronisation hypothesis by (Meltzer, 1981) and (Musgrave, 1996). This suggest that there is a feedback loop between the two variables.

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Source: College of Business and Management Sciences (CoBAMS)