FISCAL POLICIES AND ECONOMIC GROWTH IN NIGERIA

Abstract

Fiscal policies stimulates economic growth and development through a number of different channels when good policies on fiscal aggregate such expenditure, revenue and debt are made. This study examined the effect of fiscal policies on economic growth in Nigeria. The study adopted an ex-post factor research design. A purposive sampling technique was used to select secondary data within the stated period (2012-2022). The data obtained was analysed using econometric analysis of multiple linear regressions with aid of SPSS 25.0. Results of statistical data analyses revealed that government expenditure and revenue have positive and significant effect on gross domestic product (GDP) in Nigeria. Also, public debt was revealed to have negative and significant effect on Gross Domestic Product in Nigeria. It was concluded that the government expenditure, government revenue and public debt occupy a vital role in the economy and thus its activities must remain under constant review and analytical spotlight. The study recommend amongst others that the Nigerian government should enhance the efficiency of its spending by prioritizing investments in infrastructure, education, healthcare, and other critical sectors that can spur economic growth, improve its revenue collection mechanisms and adopt a prudent debt management strategy.