Fiscal Policy and Economic Stability in Nigeria
DOI:
https://doi.org/10.55677/ijhrsss/03-2025-Vol02I4Keywords:
Economic stability, Government expenditure, Taxation, Inflation, Public goods and servicesAbstract
Keynesian fiscal policy framework and multiple regression analysis technique were used to appraise the impact of taxation and public expenditure on economic stability in Nigeria from 1981 to 2022. The results show that petroleum profits tax, capital expenditure and recurrent expenditure significantly influenced inflation in Nigeria, with increase in recurrent expenditure and petroleum profits tax causing inflation to rise. The study recommended that government should cut down recurrent expenditure, subsidise petroleum products and increase expenditure on public goods and services. Tax authorities should diversify tax revenue generation by fine-tuning current tax policies to capture more taxpayers into the tax net.
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