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
Date Written: July 4, 2013
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
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