Dynamics of Fiscal Policy on the Growth of Nigeria Economy

Abstract

The study examined dynamics of fiscal policy on the growth of Nigeria Economy. The objectives were; to examine the effect of government revenue on the growth of Nigerian Economy, to examine the effect of government expenditure on the growth of Nigeria Economy and to ascertain the effect of government borrowing and employment on economic growth in Nigeria. Secondary data was sourced from Central Bank of Nigeria Statistical Bulletin and ordinary least square of multiple regression were used to establish the relationship between dependent and independent variables. The findings revealed that government revenue had no significant effect on gross domestic product. Also shown that there was a significant effect of government expenditure on gross domestic product. It was discovered that government borrowing had a significant effect on gross domestic product and employment had a significant effect on gross domestic product. It was recommended that government should harmonise the tax system and taxes should be spent on productive sector of the economy. The study recommended that efforts should be made to increase the economy because of its direct consequences on fiscal policy

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