Fiscal Policy and Economic Stability in South East, Nigeria from 2015-2023

Igbokwe Chukwuma Igbokwe and Anikeze Nnaemeka Hillary

Department of Public Administration, Faculty of Management Science Enugu State University of Science and Technology

Email: igbokwechukwuma@gmail.com; nnaemeka.anikeze@esut.edu.ng

ABSTRACT

This study examined fiscal policy and economic stability in South East, Nigeria from 2015 – 2023. Specifically the study is design to; ascertain the extent taxation (T) has affected unemployment rate (UR) in the South East Nigeria, assess the extent to which government spending (GS) have impacted on unemployment rate (UR) in South East, Nigeria. The study adopted Ordinary Least Square (OLS) research design and made used of secondary data sourced from CBN statistical bulletin, CBN Annual Report and Statement of Accounts 2023. The findings of the study revealed that the coefficient of the constant term is 13.07545 and assumes a positive sign. It is statistically significant at 0.0003 levels, while the employment rate (UR) has a negative sign and hence shows a negative relationship with taxation (T). The findings also revealed that Taxation (T) has a negative sign and sows a negative relationship with Unemployment Rate (UR) and Government Spending (GS) which is statistically significant at 0.0540, while Government Spending (GS) has a positive sign and shows a positive relationship with Unemployment Rate and Taxation. The findings imply that while Taxation (T) has no significant relationship with Unemployment (UR), Government Spending (GS) has a positive significant relationship with Unemployment Rate (UR) and Taxation (T). Based on the findings; the following recommendations where made; government spending should be channeled more on human capacity building in order to reduce the rate of unemployment, high tax tariff on indigenous industry should be discourage in order to encourage job creation through indigenous industries, the government should avoid frivolous public spending which will lead to public debt and exacerbate unemployment rate.

Keywords: Unemployment Rate, Government Spending, Taxation and Fiscal Policy

CITE AS: Igbokwe Chukwuma Igbokwe and Anikeze Nnaemeka Hillary (2024). Fiscal Policy and Economic Stability in South East, Nigeria from 2015-2023. RESEARCH INVENTION JOURNAL OF CURRENT ISSUES IN ARTS AND MANAGEMENT 3(3):43-49.