ABSTRACT

This study analyzed the Role of Fiscal Policy in the Growth of Nigeria Economy from 1981-20! The principle objective of the study is to evaluate the role of fiscal policy tools on the growth of Nigeria economy. The data used were secondary data sourced from 2018 edition of Central Bank of Nigeria Statistical Bulletin. The study used Augmented Dickey Fully Test (ADF). Co-integration test and Error Correction Test (ECM). The result of the study indicated that recurrent government expenditure and tax revenue indicated positive relationship with encourage growth of the economy, through recurrent expenditure impacted insignificantly. Government capital expenditure showed negative relationship with GDP but significantly. The ADP result showed stationarity at first and second difference while there co-integration test indicated long run relationship among the variables. The study therefore recommend among all rhal: The government should as a matter of importance monitors every amount allocated to capital expenditure to ensure accountability and transparency for developmental purposes for which the capital budgets were originally made for. The government should also reduce the huge allocations to recurrent expenditure which is unproductive to add to the capital which is productivt! wul cic:vdupmenh,I 111 nature if the country to stand tall in the committee of other developed or developing countries in the nearest future. The tax administrators should be properly check mated to m·oid tax diversions and underestimation of tax subjects. This is to ensure that there is no leakage in the revenues of the government. The tax administration should be simplified enough for all ax payers to understand the rudiments of taxation so as to appreciate the sociul contract between the government and the citizens to accelerate the volume vf internaiiy generutnl n ·. n111t:.