This study examined tax revenue and budget implementation in Nigeria.\nSecondary method of data collection was adopted for a period of 40 quarters\nfrom 2008Q1 to 2017Q4. The study made use of Fully Modified Least Square\n(FMOLS) and Error Correction Model (ECM) based on ARDL approach, after\nconducted pretest such as unit root test, and co-integration test. Result\nshowed that tax revenue including petroleum profit tax and company income\ncontributes positively and significantly to capital budget implementation in\nNigeria, while custom and excise duties significantly and negative affect capital\nbudget implementation in Nigeria; that custom & excise duties as well as\nvalue added tax contributes significantly and positively to recurrent budget\nimplementation in Nigeria, while tax revenue from petroleum profit tax significantly\nand negatively influences recurrent budget implementation in the\ncountry. Hence the study recommends that government should engage more\nof tax revenue generated from both petroleum profit tax and company income\ntax toward capital projects in the country, rather than recurrent expenditure\nand collection cost minimization strategy should be device by government\nthrough the federal inland revenue services and other tax regulatory\nbodies especially in terms of both customs & excise duties and value added\ntax, so as to ensure that proceed from these sources can contribute largely to\ncapital budget implementation.
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