An evaluation of fiscal policy’s role in promoting sustainable growth in Nigeria: A case study of Kaduna State
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Background of the Study :
Fiscal policy, encompassing government expenditure and taxation, plays a crucial role in achieving sustainable economic growth. In Kaduna State, between 2000 and 2020, fiscal policies have been implemented to stimulate investment, create jobs, and enhance public service delivery. Measures such as progressive taxation, increased public spending on infrastructure, and targeted subsidies have been designed to promote balanced growth and reduce income disparities (Uche, 2023). Empirical studies reveal that sound fiscal policy can generate multiplier effects that spur economic activity and foster long-term stability. However, challenges such as fiscal mismanagement, budgetary deficits, and inefficiencies in resource allocation often impede the full realization of these benefits. This study evaluates the role of fiscal policy in promoting sustainable growth in Kaduna State by analyzing budgetary data, growth indicators, and policy implementation reports. The research aims to identify the strengths and weaknesses of current fiscal strategies and to propose reforms that can enhance fiscal discipline and stimulate sustainable economic development (Adeniyi, 2024; Chinwe, 2025).
Statement of the Problem
Despite numerous fiscal interventions, Kaduna State’s economic growth has been inconsistent, partly due to inefficient fiscal policies and budgetary imbalances (Uche, 2023). The gap between policy objectives and actual economic outcomes highlights issues in revenue collection, public spending, and fiscal management. This study seeks to investigate these shortcomings and assess the overall impact of fiscal policy on sustainable growth, providing recommendations to improve fiscal efficiency.
Objectives of the Study:
1. To evaluate the impact of fiscal policy on sustainable growth.
2. To identify inefficiencies in fiscal management.
3. To recommend policy reforms for fiscal sustainability.
Research Questions:
1. How does fiscal policy affect sustainable growth in Kaduna State?
2. What are the key inefficiencies in fiscal management?
3. What reforms can improve fiscal outcomes?
Research Hypotheses:
1. Effective fiscal policy promotes sustainable growth.
2. Budgetary inefficiencies hinder economic development.
3. Policy reforms can significantly enhance fiscal performance.
Significance of the Study (100 words):
This study is significant as it examines how fiscal policy influences sustainable growth in Kaduna State. Its findings will help policymakers refine budgetary practices, improve revenue collection, and optimize public spending, thereby fostering long-term economic stability and development (Uche, 2023).
Scope and Limitations of the Study:
The study focuses on fiscal policy impacts in Kaduna State from 2000 to 2020, based on budgetary and economic data. It does not include non-fiscal determinants of growth.
Definitions of Terms:
1. Fiscal Policy: Government strategies regarding taxation and expenditure.
2. Sustainable Growth: Economic development that meets current needs without compromising future generations.
3. Fiscal Discipline: The ability to manage public finances efficiently.
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