Fiscal Policy and Macroeconomic Performance in Nigeria: A Time Series Data Analysis
The purpose of this analysis was to determine the impact of various fiscal policies on Nigeria’s GDP from 1986 until 2022. Examining the correlation between charge pay and GDP growth rate is the main focus. Determine the degree to which changes in GDP are correlated with changes in open expenditure. The Keynesian hypothesis was taken into account in this evaluation. The evaluation data was processed using a multi-loss of faith demand and E-view programming structure 12. A direct and quantitative correlation exists between the amount of tax revenue received by the Nigerian government and the rate of growth in the country’s total national production. Specifically, the focus group found that government spending in Nigeria was positively and significantly correlated with GDP growth. According to the review’s core principles, when properly implemented, a cash-related strategy would significantly impact macroeconomic execution constraints. The evaluation recommends partial protection due to the fact that the approaches for monetary changnge really provide savings via improved pricing procedures. Why? Considering there is substantial evidence that the rate of growth of GDP is strongly correlated with the amount of money that the government spends. We recommend maintaining the variables used in this study as they provide strong evidence of a correlation between the usage of by the government and the growth of Nigeria’s gross domestic product.
Keywords: Government tax revenue, Government expenditure, GDP Growth Rate, Fiscal policy and Macroeconomic performance.
