THE IMPACT OF CORRUPTION ON FISCAL POLICY MANAGEMENT IN NIGERIA

THE IMPACT OF CORRUPTION ON FISCAL POLICY MANAGEMENT IN NIGERIA

ABSTRACT

This study examined the “Impact of Corruption on Fiscal Policy Management in Nigeria”. The major objective was to find out the extent to which corruption in the fiscal policy management affects Government expenditure patterns, deficit financing and tax revenue. Research hypotheses were raised and tested through the use of simple regression analysis. After the test of the hypotheses, it was discovered that corruption in the fiscal policy management, negatively and significantly, affected tax revenue in Nigeria. However it was found out that corruption positively affected government expenditure and deficit financing but was not significant. Based on the findings and conclusion, it was recommended that: The funds budgeted on expenditures of Government should be given a time for it to be spent and the balance returned to the Government treasury if any. Government supervisors should be given the time to evaluate the work to ensure that the money was spent within the time and according to purpose. Deficit financing should be used sparingly. Also, to reduce corruption on the tax revenue, flat rates should be given to one-man business, partnership and companies depending on where they are located, and if anybody has any complaint to make the person should meet tax assessors. Evidence of tax payment must be shown in both public and private schools upon admission of children into schools and tax must be paid straight through a bank into a government account. For further study, researchers can carry out research in Nigeria on “Corruption and the Composition of Government Expenditure” and “Corruption and the Budget; Problems and Solutions.”