ABSTRACT: Economic policy i.e. dominated by monetary and fiscal policies. Other policies include income, prices employment, trade and industry, money supply and government expenditure are two cardinal tools of monetary and fiscal policies respectively. Fiscal policy i.e. defined as the use of government expenditure, taxes, Borrowing and financial administration to further national economic objectives, government uses it’s expenditure and revenue activities to effect desired change in income production prices and employment, these changes concern national economic objective, which are targets at monetary policies using as many at their respective tools as may be deemed efficacious and appropriate. These i.e. consensus that fiscal and monetary policy, jointly and individually affect the level of economic activities on which policies focus. The degree relative superiority at one instrument over the other in achieving these objective has varies among policies makers and economics, and tentative resolutions and attempted empirically for different countries and different periods and circumstances. Therefore this paper is made up of three sections including the introduction. Section two deals with presentation at 1999 fiscal year. Data end evidence. The paper concluded in section three with the summary, conclusion and recommendation.
CHAPTER ONE
The economics on any country negates of its structure i.e. largely regulated by certain policies developed by the government. It could be either economic policies or social policies among the other policies. How ever the economic policies are more fundamental due to its contribution both individual and firms.
The economic factor are crucial because it also serve as a foundation for the successes of the other policies at the government. The constitute element of these economic polices need to be manipulated and most of them simultaneously for the designed results. It also followed that the techniques of manipulation of economic factor play vital role in determining the effectiveness and efficient implementation at the policy strategy in achieving the desired goal. One of the essential aim of economics policies is the fiscal policies [as it elates to government source of revenue and expenditure] serves as means of planning, organizing, controlling and coordinating the tempo at activities in the economy. Fiscal policies in itself can be said to be made up of specific course of action involving the formulation at ten structures and expenditure patterns. The direction of these expenditure and taxes are specific in nature for designed result or changes.
Fiscal policies as a key to economic resulting and development as been in existence before the world was many economist had advocated theories as a means to economic prosperity from the destruction at the world war. But in the early 20th century Lord Maqnard, John keys put forward an articulated and constructive solution to solving economic problem. Lord keys in his book explain that the revamping of an economic could be achieved through the redirection at government expenditure from war machines to soft loan to increase investment, generate employment and consequently increase aggregate demand as a means of getting hold on the hyper inflection that exist after the second world war.
In Nigeria, the earliest known from at fiscal policy were those established by the British administration as for bank as the 19th century, the political structure at them was complex due to existence of the indigenous government under crisis, obasi, obonyis, obi’s etc along with the colonial masters.
The situation there that was payment for administration of the country were made to the British government. The British government’s policy on revenue for development was adopted from
Dr Larl Grey report in 1952 in which he advocated economic development amongst on civilized people through self determination under the British supervision. The policy seemed to suit Nigeria because of the existence of local authorizes and this led to an in directive rule policy.
The revenue generation method which was based on duties paid on imparted goods was pursued because it avoided the distruption of the indigenous social land economic system and its incidence did not directly affect the average Nigeria. In addition to revenue form duties, the British government supplemented with annual and direct grant to Lagos. The financial however began to divide due to increased public criticism in British against the spreading at British influences in west Africa. It stopped in 1810 after it educed from 5,000 to 2,000 in 1862,1863 and 1865 respectively.
The expenditure was solely directed towards improving and comfort at the British officers and maintenance at law and order. The revenue and expenditure reforms also increased considerably well into the 20th century.
However, in these modern times, fiscal policies as a not developed/ formulated isolation. They are formulated and Implement with an aim of having a synchronized approach to tacking economic problems. The generally accepted fiscal policy measures incorporate well economic of a means at reducing adverse effects that may arise thus reducing the standard of living of the citizens at the country.
The problem at the study is to determine at the general note and problem and prospects at the effect of fiscal policy in developments at general economy and implementation at the structural adjustment program was still on the main problem and the year fiscal policy of the developments at Nigeria economy.
An awareness of the role at fiscal polices in the development at the economy and its effect of economy i.e. essentially for all the economic units individual business etc. the degree at industrialization indirectly shows the stage an economy for productive for potential investors.
Company tax custom and exercise duties import duties on raw materials and equipment that can not be sourced locally, the set at fundamental issues that need to be addressed to make the investments attractive e.g high company tax/ exercise duties make production in attractive. High import duties on goods that can be manufactured locally needed to be protected from un healthy foreign competition.
The other set of fundamental has to do with conducive environment guaranteed under sound fiscal policies.
This refers to the direction of government resources/expenditure towards the provision of essential infrastructure, this includes constant power supply, good road network, water and sanitation, reliable communication network, reliable transport system, law and order etc. these essential which ought to be part of the governments public work preferred make the quest for industrial take off reality.
Apart from these enumerated above, high capital intensive project that provides basic industrial and domestic raw- material should be incorporated into the government owned, joint twice with private investors or long term loans to private investors are menace at achieving the objectives some of those projects are
Refineries petrochemical for pharmaceutical, companies, plastics, furniture steel complexes: iron and steel, wires for automobile construction and iron and steel based industries.
Diverting attention to agricultural production, provision or subsidization encourages large scale production on one hand, establishment or encouragement of agriculture based industries that store and for process these products are desirable on the other hand, fiscal policy measure directed towards export drive and other motives listed can be management at resources
Due to un equal importance of a stable and variable economy i.e. to both the public and private sector.
This study would be of benefit to the government for better planning at all policies related to their responsibilities to the economy in particular and to country as a whole the professional who analyze the economy system and who this study would aid by giving an inside into future research and application in their fields.
Fellow student: who need his study as at part of their academic work/ pursuit. The entrepreneur and investors. They need to understand the implications and effect of certain fiscal polices can have on their business furthers directing or individual.
Scope extent at this research seen confined to fiscal policy formulation and implementation in Nigeria. It has also been limited in time frame at 1996-2000 the research also includes the relationship between fiscal policies and other government economic policies, how it is used of light inflation, unemployment, encourages investment/ production of an generally encourage private participation in economy building wheel.
LIMITATION OF STUDY
The study involoses the unlighlinting at the relevance of fiscal policies in the development of the Nigeria economy. It does not however include compares with other country since economy structures and systems differ the studies coverage at the 1996-2000 period was compared with problem related to
Such related publications.
(c ) cost and time constraints
Budget: an economic tool by government to estimate its expected revenues and project expenditure over a period of time usually a year.
Composite consumer index dept conversion program. A system initiated by the federal government thought the central banks in which the through action to interested parties.
Federal account/ fund, a pool of government resources that represent amount due to the federal, state and government before they are disbursed inform of statutory allocation.
Foreign policy: articulated con use of action that defines Nigeria’s relationship with other countries and its stand or attitude towards certain international issues.
Infatron rates: the rate or speed at which the general price level are increasing. Marginal propensity increasing marginal propensity consumer that degree of increase in consumption levels as a result at increase in income.
Marginal propensity to save: that degree of increase in investment due to increase income.
Monopolistic firms, a firm that can influence price fluctuation in an industry by with- holding or increasing its level of output. it also controls a substantial part the market for its product(s).
Multinational large firms in Nigeria that are one of the numerous subsidiaries are in different countries .
Stabilization account/ fund: a fund established by the federal government for pooling at external budgetary revenue at unexpected income especially from oil exports. It also provides as a source of funds for emergency purpose.
Statutory allocation: amount officially due to the different tiers at government in Nigeria, different sectors and parastatals/ agencies and other special allocation from the federation account.
Strategic projects: capital-intensive projects requires as a foundation for sustainable growth and industrialization, e.g. iron and steel complex.
Tax: compulsory payment by individual and corporate organization into the confers of the government for running its activities.
Tax avoidance: a legitimate way at not paying tax by engaging in non-taxable activities.
Tax evasion: an illegal way of not paying tax one is liable to pay to the government. Such an act is a crime under the Nigerian law on tax. Quantitative
Data: data that is made up of figures, i.e. figure dominated data for analysis purposes.
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