Economics, Econometrics and Finance
4 years ago

Tax revenue fails to boost government expenditure in Nigeria, study finds.

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The nexus between tax revenue and government expenditure in Nigeria; evidence from Toda -Yamamotocausality test
Abdurrahman Adamu Pantamee, Abdulnasir Turawa Yola, Abdulsalam Mas’ud

Paper Summary

The study looked at how different types of taxes in Nigeria affect government spending. They used a special test to see if taxes cause spending or the other way around. The results showed that taxes influence government spending, but spending doesn't help increase tax revenue like it should. This means the government needs to focus on long-term plans to boost taxes and make sure spending is effective.

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