ABSTRACT
This research work was undertaken in order to evaluate the
impact of Fiscal policies as a tool for stabilizing a Nigerian 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.
Lack of required component of fiscal policies
Inconsistency in the use of fiscal policies.
Improper implementation of fiscal policies
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.
The depreciation of naira must be urgently considered.
There should be stream – lining of activities of certain
government amend agencies
The government should make further fiscal adjustments.
TABLE OF CONTENT
Title page
Declaration of page
Certification
Abstract
Table of content.
CHAPTER ONE
1.0 INTRODUCTION
Background of the study
Statement of the problem
Objectives of the study
Scope and limitation of the study
Significance of the study
Definition of terms.
CHAPTER TWO
2.0 LITERATURE REVIEW
History of fiscal policies in the Nigeria pre-independence
Definition and meaning of fiscal policies
Difference between fiscal and monetary policies
Tax as a tool of fiscal policy
Expenditure in fiscal policy
Tax and expenditure in fiscal policy
Limitation of fiscal policy implementation
The role of the central bank in the formulation and
implementation of fiscal policy.
CHAPTER THREE
Introduction
Research design for the study
Sources of data
Methods of data analysis
Population and sample size
Design and administration of questionnaires
CHAPTER FOUR
4.0 PRESENTATION,
ANALYSIS & INTERPRETATION OF DATA
Introduction
Presentation of data for 2006 fiscal year
Analysis of data for 2006 through 2008 fiscal year
Analysis of the federal government revenue and expenditure
of 2006-2011
Analysis of the state of the economy (2006 – 2011)
Interpretation of data.
CHAPTER FIVE
5.0 SUMMARY AND DISCUSSION OF FINDINGS, CONCLUSIONS AND
RECOMMENDATIONS.
Introduction
Discussion of findings
Summary of findings
Conclusion
Recommendation
Questionnaire sample.
Bibliography
CHAPTER ONE
1.0 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.