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.”

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