Adjustment Programmes And Agricultural Incentives In Sudan: A Comparative Study
Given the negative impact of persistent unsustainable fiscal deficits on the Nigerianeconomy, there is now a consensus among interested parties on the need to address the problem effectively. The literature suggests theree approaches for this purpose: increasein revenue, reduction in expenditure, or a continuation of both. An appraisal of the budgetary process in Nigeria shows that annual expenditure proposals are always anchored on projected revenue, thus the accuracy of revenue projection is a necessary condition for devising an appropriate framework for fiscal deficit management in Nigeria. This study, therefore, evaluates the productivity of the tax system for the period 1970- 1999 to devise a reasonably accurate estimation of Nigeria's sustainable revenue profile. This will assist in the design of an appropriate expenditure profile as a means of averting the persistent unsustainable fiscal deficit in the country. Overall, the study reports a satisfactory level of productivity of the tax system. Although the advent of the oil boom, encouraged some laxity in the management of non-oil revenue sources, this was rectified to a reasonable extent with the commencement of the structural adjustment programme. The study concludes that the current revenue profile is sustainable, with little prospectfor significant improvement in the short run. It also suggests that a significant reduction in public expenditure and prudent management of financial resources are the most feasible solutions to the problem of unsustainable fiscal deficit in Nigeria. Finally, the report underscores the urgent need for the improvement of the tax information system to enhance the evaluation of the performance of the Nigerian tax system and facilitate adequate macroeconomic planning and implementation.
|Date of creation:||Nov 1997|
|Date of revision:|
|Contact details of provider:|| Postal: P.O. Box 62882, Nairobi|
Phone: (254-2) 228057
Fax: (254-2) 219308
Web page: http://www.aercafrica.org
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:aer:rpaper:rp_063. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (winston wachanga)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.