Corruption has been prevalent since ages. Government of all countries are affected by corruption. The purpose of this paper is to analyse effect of corruption in government through expenditure and revenue. Mathematical study is done by using difference equations. There is a consensus that real magnitude of corruption can not be measured. In this paper, the corruption is being estimated by a parameter – corruption index of the country under consideration.
The aim of this article is to create awareness on the effect of corruption on economic growth and development of any country. The paper is concluded by considering some numerical example and discussing the effect of corruption.
Keywords and Phrases
Corruption Precision Index, Magnitude of corruption, Government expenditure and revenue.
A.M.S. subject classiﬁcation
39A10, 39A60, 65Q10