Fiscal Policy as an Engine of Economic Growth in Nigeria

Abstract

Economic growth is a powerful engine for generating long-term standard of living. There are many strategies through which a country may attain self-reliance. Fiscal policy has been identified as a means of generating growth. Taxation, major source of government revenue as well government expenditure are important channels of transmission between fiscal policy and growth. This paper employs basically a descriptive method to review the effect of fiscal policy in Nigeria. The study reveals that there are various challenges facing fiscal policy and tax implementation in Nigeria and that an appropriate method of tax implementation will increase the revenue of the country thereby accelerating economic growth. This paper submits that efficiency of tax system is not just a matter of appropriate tax laws but also the efficiency and integrity of tax administrators.

Key Words: Fiscal policy, Tax, Expenditure, Economic Growth