Fiscal Policy Sustainability and Growth in the Nigerian Economy

• Author(s): Jeff-Anyeneh Elechi Sarah PhD ; Anachedo, Chima Kenneth ; Nnoje, Izuchukwu Andrew ; Ezeaku, Njideka Chisom
• Paper ID: 1704089
• Page: 87-96
• Published Date: 15-02-2023
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 6 Issue 8 February-2023

Abstract

Fiscal policy which is about how government revenue are earned and government expenditure incurred. Different economic reforms has been introduced by the past government in order to change the country’s fiscal policy, despite all the economic reforms that has been introduced to either reduce expenditure or increase revenue, the country still sticks to its tradition of recording a budget deficit. This study investigates how government revenue, government expenditure and budget deficits affects economic growth in Nigeria from 1990-2020. To examine fiscal policy sustainability in Nigeria and to see how the individual variables of fiscal policy affects Nigerian economic growth. This research used an ex-post facto research design. ADF test was conducted, the Ordinary Least Square regression model and Granger Causality test was employed and findings revealed that government revenue has negatively predicted economic growth in Nigeria and that fiscal un-sustainability as measured by fiscal deficit negatively and significantly predicted economic growth in Nigeria. Based on the findings it was recommended that generation of revenue by the government should be anchored on the proceeds of developmental projects and not on excessive taxations and levies that are counterproductive and The government should also pay particular attention towards ensuring that expenditure does not rise faster than revenue as fiscal deficit would hamper economic growth.

Citations

IRE Journals:
Jeff-Anyeneh Elechi Sarah PhD , Anachedo, Chima Kenneth , Nnoje, Izuchukwu Andrew , Ezeaku, Njideka Chisom "Fiscal Policy Sustainability and Growth in the Nigerian Economy" Iconic Research And Engineering Journals Volume 6 Issue 8 2023 Page 87-96

IEEE:
Jeff-Anyeneh Elechi Sarah PhD , Anachedo, Chima Kenneth , Nnoje, Izuchukwu Andrew , Ezeaku, Njideka Chisom "Fiscal Policy Sustainability and Growth in the Nigerian Economy" Iconic Research And Engineering Journals, 6(8)