FISCAL POLICY AND AGRICULTURAL DEVELOPMENT IN NIGERIA

FISCAL POLICY AND AGRICULTURAL DEVELOPMENT IN NIGERIA  (ECONOMICS PROJECT TOPICS AND MATERIALS)

ABSTRACT

Several macroeconomic policies have been used in Nigeria, which have directly and indirectly influenced agriculture output growth. This study of fiscal policy on Agriculture development. The result show that the government expenditure exerts a negative influence on the economy while government revenue affects the economy positively. Inflation as a control for economic stability is found negatively relative to the agricultural index. It is therefore necessary that appropriate fiscal policies be put in place.

CHAPTER ONE

1.1     INTRODUCTION

A good financial power of a nation is a function of satisfactory and efficient fiscal policies. Fiscal and monetary policies are the twin policy instrument used by a nation to regulate the level of government spending, taxation and public debt aimed at influencing economic activities in a desired manner. The past failure of fiscal policies in Nigeria in contributing to growth wealth creation and poverty reduction can better be analyzed within the framework of a commonly known term “Natural Resource Curse”. Natural resources curse depicts a situation-where a country endowed with verse amount of natural resources fails to translate such wealth into meaningful economic growth and development, Sham sudden Usman (2008).

The failure of fiscal policy in Nigeria in the past to insulate the economy from the volatility of oil revenue has led to undue real exchange rate appreciation, with negative impact on the competitiveness of the economy.

Procyclical fiscal policy, with adverse impact on the quality of government expenditure with detrimental effect on investment and growth. Rent-seeking behaviour, leading to inefficiency in resource allocation with negative impact on growth and development. The problem of quality of spending with Inefficiency and leakages in both the capital and current budgets.

The problem of ill-conceived projects. However, agricultural sector has been invaluable in supporting economic growth and development since 1960. In fact before the discovery and exploration of petroleum in Nigeria, the Nigeria economy depended on funds generated from agricultural export expansion for the development of other sectors of the economy. Due to its important role in nation building, agricultural sector has continued to be a target of government policies over time.

FISCAL POLICY AND AGRICULTURAL DEVELOPMENT IN NIGERIA  (ECONOMICS PROJECT TOPICS AND MATERIALS)