THE EFFECT OF FISCAL POLICY IN DEVELOPMENT OF NIGERIA ECONOMY

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ABSTRACT

Economic policy i.e. dominated by monetary and fiscal policies. Other policies include income, prices employment, trade and industry, money supply and government expenditure are two cardinal tools of monetary and fiscal policies respectively.

Fiscal policy i.e. defined as the use of government expenditure, taxes,

Borrowing and financial administration to further national economic objectives, government uses it’s expenditure and revenue activities to effect desired change in income production prices and employment, these changes concern national economic objective, which are targets at monetary policies using as many at their respective tools as may be deemed efficacious and appropriate.

These i.e. consensus that fiscal and monetary policy, jointly and individually affect the level of economic activities on which policies focus. The degree relative superiority at one instrument over the other in achieving these objective has varies among policies makers and economics, and tentative resolutions and attempted empirically for different countries and different periods and circumstances.

Therefore this paper is made up of three sections including the introduction. Section two deals with presentation at 1999 fiscal year. Data end evidence. The paper concluded in section three with the summary, conclusion and recommendation.

 

 

 

 

 

 

 

 

 

 

 

CHAPTER ONE

• BACKGROUND

The economics on any country negates of its structure i.e. largely regulated by certain policies developed by the government. It could be either economic policies or social policies among the other policies. How ever the economic policies are more fundamental due to its contribution both individual and firms.

The economic factor are crucial because it also serve as a foundation for the successes of the other policies at the government. The constitute element of these economic polices need to be manipulated and most of them simultaneously for the designed results. It also followed that the techniques of manipulation of economic factor play vital role in determining the effectiveness and efficient implementation at the policy strategy in achieving the desired goal. One of the essential aim of economics policies is the fiscal policies [as it elates to government source of revenue and expenditure] serves as means of planning, organizing, controlling and coordinating the tempo at activities in the economy. Fiscal policies in itself  can be said to be made up of specific course of action involving the formulation at ten structures and expenditure patterns. The direction of these expenditure and taxes are specific in nature for designed result or changes.

Fiscal policies as a key to economic resulting and development as been in existence before the world was many economist had advocated theories as a means to economic prosperity from the destruction at the world war. But in the early 20^th century Lord Maqnard, John keys put forward an articulated and constructive solution to solving economic problem. Lord keys in his book explain that the revamping of an economic could be achieved through the redirection at government expenditure from war machines to soft loan to increase investment, generate employment and consequently increase aggregate demand as a means of getting hold on the hyper inflection that exist after the second world war.

In Nigeria, the earliest known from at fiscal policy were those established by the British administration as for bank as the 19th century, the political structure at them was complex due to existence of the indigenous government under crisis, obasi, obonyis, obi’s etc along with the colonial masters.

The situation there that was payment  for administration of the country were made to the British government. The British government’s policy on revenue for development was adopted from

Dr Larl Grey report in 1952 in which he advocated economic development  amongst on civilized people through self determination under the British supervision. The policy seemed to suit Nigeria because of the existence of local authorizes and this led to an in directive rule policy.

The revenue generation method which was based on duties paid on imparted goods was pursued because it avoided the distruption of the indigenous social land economic system and its incidence did not directly affect the average Nigeria. In addition to revenue form duties, the British government supplemented with annual and direct grant to Lagos. The financial however began to divide due to increased public criticism in British against the spreading at British influences in west Africa. It stopped in 1810 after it educed from 5,000 to 2,000 in 1862,1863 and 1865 respectively.

The expenditure was solely directed towards improving and comfort at the British officers and maintenance at law and order. The revenue and expenditure reforms also increased considerably well into the 20^th century.

However, in these modern times, fiscal policies as a not developed/ formulated isolation. They are formulated and Implement with an aim of having a synchronized approach to tacking economic problems. The generally accepted fiscal policy measures incorporate well economic of a means at reducing adverse effects that may arise thus reducing the standard of living of the citizens at the country.

• STATEMENT OF PROBLEM

The problem at the study is to determine at the general note and problem and prospects at the effect of fiscal policy in developments at general economy and implementation at the structural adjustment program was still on the main problem and the year fiscal policy of the developments at Nigeria economy.

• OBJECTIVES OF STUDY

• To examine the fiscal policies formulated in Nigeria from 1996-2000
• To identify the roles they have planted in the development of the Nigeria economy.
• To determine if these role have seen consist with stated objectives of the government.

To determine the extent at implementation at formulated