Dynamics of Fiscal Policy and National Development in Nigeria

Abstract

The study was designed to explore the relationship between fiscal policy and national development. The exploratory research design was adopted in the investigation. Data were generated from both primary and secondary sources, which were found useful for the study. Fiscal policy is crucial in national development because manipulating revenue and expenditure means that government must reduce taxation to increase spending and vice-versa. In the public sector, the primary purpose of fiscal policy is ensuring that an agency operates within its budget limit. This means that public sector managers are charged with the oversight of government’s revenues and expenditures, including budget management, corporate compliance, adherence to financial regulations, and plans. Data for the study were analyzed through the regression method, and the result showed positive association between fiscal policy and national development. Based on this finding, it was recommended among others that proper fiscal budgeting is essential for national development.