Tax Factor in Nigeria's Fiscal Policy for Reducing Budget Deficit and Enhancing Growth

Okafor, S.O., & Uzoechina, B.I. (2013). Tax factor in Nigeria’s fiscal policy for reducing budget deficit and enhancing growth. Journal of Economic Studies, 10(1):32-41.

10 Pages Posted: 6 Jul 2016

See all articles by Samuel Okafor

Samuel Okafor

Nnamdi Azikiwe University - Department of Economics

Benedict Uzoechina

Renaissance University, Enugu - Department of Economics

Date Written: July 4, 2013

Abstract

This article focused on isolating potent tax policy factor for infusion into Nigeria’s fiscal policy for reducing fiscal deficit and enhancing growth. it was designed as a correlational study. data were sourced from the Central Bank of Nigeria. Data were analyzed with the statistical technique of factor analysis. result indicate that(1) Potent tax policy factor in Nigeria’s fiscal policy was tax (2) tax policy was reinforced by monetary policy for effective fiscal deficit reduction (3) Fiscal policy was characterized by inconsistencies in preferred choice between two fiscal policy approaches- countercyclical and compensatory (4) Application of deficit financing through external borrowing was inflationary. Base on these findings, it was recommended, inter alia, that (1) Federal ministry of finance should strengthen the country’s fiscal policy through the infusion of corporate tax as the major component of its tax policy (2) Federal Government should adopt surplus budget, rather than deficit budget, to reduce inflation and enhance growth

Keywords: Tax; fiscal policy; budget deficit

Suggested Citation

Okafor, Samuel and Uzoechina, Benedict, Tax Factor in Nigeria's Fiscal Policy for Reducing Budget Deficit and Enhancing Growth (July 4, 2013). Okafor, S.O., & Uzoechina, B.I. (2013). Tax factor in Nigeria’s fiscal policy for reducing budget deficit and enhancing growth. Journal of Economic Studies, 10(1):32-41.. Available at SSRN: https://ssrn.com/abstract=2804660

Samuel Okafor (Contact Author)

Nnamdi Azikiwe University - Department of Economics ( email )

Enugu-Onitsha Expressway
Nnamdi Azikiwe University
Awka, Anambra
Nigeria

Benedict Uzoechina

Renaissance University, Enugu - Department of Economics

Department of Economics
Ugbawka, Enugu State 01183
Nigeria

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