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ABSTRACAT

 

This research work was undertaken in order to evaluate the role of Fiscal policies in the development of Nigeria economy. A major issue in Nigerian economy recovery relates to the prospect of adoption of the most relevant fiscal policies in its economy. In view of this, the researcher addressed the following problems to be curbed in this research study.

1. Lack of required component of fiscal policies
2. Inconsistency in the use of fiscal policies.
3. Improper implementation of fiscal policies
4. Inability of the country to improve on existing fiscal policies.

Due to the nature of this research work, ordinary method of data analysis and interval method were used. Both primary and secondary data were used. Secondary data were gotten from Newspapers and magazines, textbooks, journals and periodicals etc. questionnaires were used in generating primary data.

From the analysis made, the researcher discovered that between 1998 and 2000 fiscal years, the country has witnessed many changes in its fiscal policies which are hinged on the combination techniques applied on the components of fiscal policies, the mode of implementation of fiscal policies and the degree  of success in the implementation of process.

Based on the findings made in this research study, the researcher recommends that the country should embark on the following in order to develop its economy.

1. The depreciation of naira must be urgently considered.
2. There should be stream – lining of activities of certain government amend agencies
3. The government should make further fiscal adjustments.

 

 

TABLE OF CONTENT

CHAPTER ONE: INTRODUCTION

1.1            Background of the study

1.2            Statement of the problem

1.3            Objectives of the study

1.4            Major research hypothesis

1.5            Scope and limitation of the study

1.6            Significance of the study

1.7            Definition of terms.

CHAPTER TWO: LITERATURE REVIEW

2.1            History of fiscal policies in the Nigeria pre-independence

2.2            Definition and meaning of fiscal policies

2.3            Difference between fiscal and monetary policies

2.4            Tax as a tool of fiscal policy

2.5            Expenditure in fiscal policy

2.6            Tax and expenditure in fiscal policy

2.7            Limitation of fiscal policy implementation

2.8            The role of the central bank in the formulation and implementation of fiscal policy.

 

CHAPTER THREE

3.1            Introduction

3.2            Research design for the study

3.3            Sources of data

3.4            Methods of data analysis

3.5            Population and sample size

3.6            Design and administration of questionnaires

CHAPTER FOUR: PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

4.1            Introduction

4.2            Presentation of data for 1998 fiscal year

4.3            Analysis of data for 1997 through 1998 fiscal year

4.4            Analysis of the federal government revenue and expenditure of 1999– 2000

4.5            Analysis of the state of the economy (1999 – 2000)

4.6            Interpretation of data.

 

CHAPTER FIVE: SUMMARY AND DISCUSSION OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS.

5.1            Introduction

5.2            Discussion of findings

5.3            Summary of findings

5.4            Conclusion

5.5            Recommendation

Questionnaire sample.

Bibliography

 

 

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

The economy of any country, irrespective of its structure is regulated by certain policies developed by the government. Some of these include economic policies, social policies, monetary policies etc. however of all these policies economic policies are most fundamental. The economic factors are cynical because they serve as a foundation for the success of the other policies of government. The constituent element of these economic policies need to be manipulated simultaneously to achieve the desired results. The techniques of manipulating the economic factors play an important role two. One of the essential arms of economic policies – the fiscal policy, serve as a means of planning, organizing, controlling and coordinating the tempo of activities in the economy. Fiscal policy in itself can be said to be made up of specific course of action involving the formulation of tax structure and expenditure patterns. The direction of these expenditures and taxes are specific in nature for results or changes. Before the world war, fiscal policy as a key to economic restructuring and development has been in existence. Many economists had propounded theories as a means to economic prosperity from the destruction of the world war, but in the early 20the century, Lord John Keynes put forward on articulated and constructive solution to solving economic problem. Lord Keynes in his book explain that the revamping of an economy could be achieved through the redirection of government expenditures from war machines to soft loans to increase investment, generate employment and consequently increase aggregate demand as a means of getting hold on the hyperinflation that existed after the Second World War.

In Nigeria, the earliest known forms of fiscal policies were used. It was established as far back as 19th century by the British Administration. Then the political system became complex due to the existence of the indigenous government under Emirs, Obas, Obongs, Obis etc. along with the colonial masters. In effect, payment for the administration of the country were made to the British government.

The government policy used by the colonial masters on revenue for development was adopted from Dr. Earl Grey report (1852) in which he advocated economic development amongst civilized people. Through self determination under the British supervision. Because of the existence of local authorities which led to indirect rule policy, the policy suited Nigeria. The revenue generation method which was based on duties paid on imported goods was pursued because it avoided disruption of the indigenous social and economic system and its incidence did not directly affect the average Nigerian. Besides, revenue from duties the British government support however, began to dwindle due to increase public criticism in Britain against spreading of Brutish influence in West Africa. 1870, the government supplement stopped and was reduced from #5,000.00 to #2,000.00 to #1,000.00 in 1862, 1863 and 1865 respectively. The expenditure was solely directed towards improving the comfort of the British officers and the maintenance of law and orders. These and then. The revenue and expenditure volume also increase considerably well into the 20th century. Considering this modern time, fiscal policy as a means of economic development are not developed in isolation. They are formulated and implemented simultaneously with monetary policies, foreign policies by the government with the aim of having a synchronized approach in tackling economic problems. The generally accepted fiscal policy measure incorporates welfare economics as a means of reducing adverse effects that may arise thus reducing the standard of living of the citizens of the country.

From the foregoing, this research is aimed at identifying the role of fiscal policies in the development of Nigerian economy.

 

1.2     STATEMENT OF THE PROBLEMS.

Fiscal policies can be valuable tool for economic growth and development if accurately and timely implemented. Therefore by the end of this project the following questions will be answered.

1. Do Nigeria fiscal policies posses the required components and impact needed to fiscal economic growth?
2. Are the fiscal policies consistent or not?
3. Are they properly implemented?
4. Can any improvement be made

 

1.3     OBJECTIVES OF THE STUDY

1. To examine the fiscal policies formulation in Nigeria from 1998 – 2000
2. To identify the role they play in the development of Nigerian economy
3. To determine if these roles have been consistent with stated objectives of the government.
4. To determine the extent of implementation of formulated fiscal policies.
5. To make recommendation where appropriate.

 

1.4     MAJOR RESEARCH HYPOTHESIS.