Essay On Fiscal Policy In Nigeria

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Fiscal policy is the means by which a government adjusts its spending levels and tax rates to check and influence economy of a nation. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply. These two policies are used in various combinations to direct economic goals of a country. Here we look at how fiscal policy works, how it must be monitored and how its implementation may affect different people in an economy.
There are two types of fiscal policy. The first, and most widely-used, is expansionary. It stimulates economic growth. It's most critical at the contraction phase of the business cycle.
The second type, contractionary fiscal policy, is rarely used. That's because its goal is to slow economic growth. Why would you ever want to do that? One reason only, and that's to stamp out inflation. That's because the long-term impact of inflation can damage the standard of living as much as a recession.

Country X’s ECONOMY
Nigeria is a middle-income, mixed economy and emerging market, with expanding manufacturing, financial, service, communications, technology and entertainment sectors. It is ranked as the 21st-largest economy in the world in terms of nominal
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The two main instruments of fiscal policy are government taxation and government expenditure. It can also be seen as government spending policies that influence macroeconomic conditions. These policies affect tax rates, interest rates and government spending, in an effort to control the economy.
Impact of Fiscal Policy on Manufacturing Sector Output in recent time, various authors have suggested in the literature that fiscal policy has an important role in the growth of Nigerian economy through manufacturing sector output and that high growth rates are found in the economy where the manufacturing sector share in GDP is increasing.

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