DIRECT AND INDIRECT TAXES EFFECTS ON PUBLIC BUDGET DEFICIT IN JORDAN FROM 2008 TO 2018

Theoretically, direct and indirect taxes have a great importance as a tool for public expenditure finance and achieving governments' goals. The aim of this study is to investigate effects of direct and indirect taxes on public budget deficit in Jordan. It is based on analyzing financial data issued by Ministry of Finance in their annual and monthly finance bulletins for the period (2008- 2018). In order to test the hypotheses and analyze data of the study, we calculated financial rates and used the linear regression. The results show that taxes (direct and indirect) have no significant impact on public budget deficit in Jordan. The researcher attributed this finding for the increase in current expenditures, especially for independent agencies and public debt interests, and for tax evasion. This study recommends minimizing public current expenditures and increasing levels of taxation management in order to reduce tax evasion