FISCAL POLICY AND ECONOMIC GROWTH IN NIGERIA (1999 – 2018)

Abstract

This study examines how fiscal policy affects economic growth between 1999 and 2018 in Nigeria. The study made use of secondary data sourced from the Central Bank of Nigeria statistical bulletin and the National Bureau of Statistic. The model for the study has Economic growth as the dependent variable proxied by the gross domestic products (GDP) while its explanatory variables were the annual Recurrent Expenditure, Current Expenditure, Public External Debt and Public Domestic Debt. Using the Ordinary Least Square (OLS) multiple regression techniques; the study revealed that fiscal policy do not affect the GDP in Nigeria. This implies that the value of the fiscal policy with regard to the selected variables whether high or low is not a determinant of the GDP growth in Nigeria. That is, GDP growth rate are not often moved by the level of the budgetary provisions or allocation to determine their growth level. As such, the study concludes that the budgetary allocations notwithstanding the GDP may grow or not grow bearing other factors other than budgetary provisions and allocations level. The study, therefore recommended that more appropriate measure be taken to design the fiscal policy in a way and manner to an extent that it can help to grow for the nation a robust economy with such targets as job creation, inflation control and a favourable balance of payment.