Full Project – THE ROLE OF REVENUE MOBILIZATION ON ECONOMIC GROWTH AND DEVELOPMENT IN NIGERIA

Click here to Get this Complete Project Chapter 1-5

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

Government revenue refers to the revenue received by a government to finance its operations and development projects. It is an important tool of the fiscal policy of the government as it facilitates government spending (OECD, 2008b). Governments need to perform various functions in the field of political, social and economic activities to maximize social and economic welfare. In order to perform these duties and functions government require large amount of resources. These resources are called Public Revenues. Public revenue consists of taxes, revenue from administrative activities like fines, fees, gifts and grants. Public revenue can be classified into two types including: tax and non-tax revenue (Illyas and Siddiqi, 2010). Taxes are the first and foremost sources of public revenue. Taxes are compulsory payments to government without expecting direct benefit or return by the tax payer. Taxes collected by Government are used to provide common benefits to all mostly in form of public welfare services. Taxes do not guarantee any direct benefit for person who pays the tax. It is not based on direct quid pro quo principle. The government collects tax revenue by way of direct & indirect taxes. Direct taxes includes; Corporate tax; personal income tax, capital gain tax and wealth tax. Indirect taxes include custom duty, central excise duty, Value Added Tax (VAT) and service tax (Chaudhry and Munir, 2010). Non tax revenue refers to the revenue obtained by the government from sources other than tax. These include fees, fines and penalties, surplus from public enterprises, special assessment of betterment levy, grants and gifts and deficit financing.

Fiscal policy aligning government revenue and expenditure is of crucial importance in promoting price stability and sustainable growth in output, income and employment which are important parameters of economic growth (Ahmed, 2010). It is one of the macroeconomic policy instruments that can be used to prevent or reduce short-run fluctuations in output, income and employment in order to move an economy to its potential level. However, for sound fiscal policy, a good understanding of the relationship between government revenue and economic growth of a nation is very important, for instance, in addressing government’s budgetary deficits. Government collects tax revenues, provides goods and services not produced by the private sector, engages in commercial-type activities, makes cash and in-kind transfers to families and businesses, and pays interest on its debts (Abiola and Asiweh, 2012). All these activities require that government raise enough revenue. Governments raise revenue from different sources in order to undertake its development agendas (Ahmed, 2010). A country’s revenue structure determines who pays for public services and goods. By spreading revenues across different instruments, countries can distribute the burden across particular groups of citizens and sectors of the economy. In all OECD member countries, taxes other than social contributions represent the largest share of government revenues.

Revenue is defined as all amounts of money received by a government from external sources for example those originating from “outside the government” net of refunds and other correcting transactions, proceeds from issuance of debt, the sale of investments, agency or private trust transactions, and intergovernmental transfers ((Ahmed, 2010). Government Revenue comprises amounts received by all agencies, boards, commissions, or other organizations categorized as dependent on the government concerned. Stated in terms of the accounting procedures from which these data originate, revenue covers receipts from all accounting funds of a government, other than intra-governmental service (revolving), agency, and private trust funds (Chaudhry and Munir, 2010).

Ayres and Warr (2006) define economic as ‘a rise in the total output (goods or services) produced by a country’. It represents an increase in the capacity of an economy to produce goods and services, compared from one period of time to another. Economic growth refers only to the quantity of goods and services produced. Economic growth can be measured in nominal terms including inflation, or in real terms, which are adjusted for inflation like by the percent rate of increase in the gross domestic product (GDP). Economic growth measures growth in monetary terms and looks at no other aspects of development (Illyas and Siddiqi, 2010). Economic growth can be either positive or negative. Negative growth can be referred to by saying that the economy is shrinking. Negative growth is associated with economic recession and economic depression (King and Levine, 1993). Gross national product (GNP) is sometimes used as an alternative measure to gross domestic product. In order to compare multiple countries, the statistics may be quoted in a single currency, based on either prevailing exchange rates or purchasing power parity. Then, in order to compare countries of different population sizes, the per capita figure is quoted (Beck and Web, 2003).

1.2     STATEMENT OF THE PROBLEM

Economies with large public sectors will grow slowly because of large tax wedges but a lack of growth-enhancing government initiatives may stymie growth in countries with very small governments (Barker, Buckle and St Clair, 2008). However, not all expenditure and methods of financing have the same impacts on economic growth. While economic research suggests that the cumulative effect of taxes on economic growth is moderate, recent research (OECD, 2008b) has suggested that there is a relationship between the types of taxes imposed and economic growth. Several research studies have been conducted on government revenue and economic development. In Nigeria, people, especially the rich and the elites, deliberately dodge this civic responsibility of paying tax and sometimes employ the service of tax specialists in order to pay less tax to the government. There is also the problem of falsification of ages and the number of children and dependents one has in order to reduce the amount of tax payable. Emanating from these factors, the sub-national governments (state and local governments) contend that their currently assigned taxes are poor in terms of their bases and, therefore, accruable revenues are not enough to meet their expenditure targets. Also the statutory allocation from the federation account has been grossly inadequate as a result of a fall on gross domestic product. This invariably reduces their overall performance, considering their expenditure profiles. Taiwo (2008) observed that the distribution of government revenue is skewed in favor of one tax base or the other (eg oil revenue) in Nigeria. Nevertheless, the overwhelming evidence of positive impact of oil revenue on economic growth in Nigeria cannot be overemphasized (Odusola, 2006). However, the first question is, are other forms of taxes not important for consideration? Emanating from the above, there are some questions to ask: what relationship exists between Nigeria’s tax revenue and her economic growth? And what is the contribution from other tax base to the overall tax revenue of a nation.

1.3     OBJECTIVES OF THE STUDY

The main objective of this study is to find out the role of revenue mobilization on economic growth and development, specifically the study intends to:

1.     Determine the impact of tax on economic growth in Nigeria;

2.     Investigate the role of revenue mobilization on economic growth and development in Nigeria.

1.4     RESEARCH QUESTIONS

The following research questions are formulated to guide the study:

1.     What is the impact of taxation generation on Nigeria economic growth

2.     What is the role of revenue  mobilization on economic growth and development

1.5     SIGNIFICANCE OF THE STUDY

This study would be significant to several stakeholders:

To scholars and academicians, this study would increase body of knowledge to the scholars in the area of government revenue and economic development. It would also suggest areas for further research so that future scholars can pick up these areas and study further. The study would be important to the government especially the Ministry of Finance for making policy decisions whose overall objectives is to influence the level of economic activity and Government revenue in line with the expanding Government budget. Finally, the findings of this study would be important to policy makers especially on matters concerning taxation and budgeting so as to have manageable budgetary deficits.

1.6     SCOPE OF THE STUDY

This research work covers Nigeria as a whole, the problems, effect and the role of Revenue mobilization on economic growth and development will be deeply investigated on in this research.

1.7     DELIMITATION OF THE STUDY

However, in the course of carrying out this research work, the researcher can foresee some limitations which include; insufficient financing, insufficient data for the research work and the time required for the project to be concluded.

1.8     RESEARCH METHODOLOGY

This study is basically on the role of revenue mobilization on economic growth and development in Nigeria. The study therefore adopts one of the traditional methods of gathering information, i.e. the secondary sources. A sizeable percentage of secondary sources that is used came from published and unpublished works which include materials extracted from: Archives, Newspapers, discussions, Conference papers, Magazines, Internets, Books, and Articles in journals e.t.c.

Get the Complete Project

This is a premium project material and the complete research project plus questionnaires and references can be gotten at an affordable rate of N3,000 for Nigerian clients and $8 for International clients.

Click here to Get this Complete Project Chapter 1-5

You can also check other Research Project here:

1. Accounting Research Project
2. Adult Education
3. Agricultural Science
4. Banking & Finance
5. Biblical Theology & CRS
6. Biblical Theology and CRS
7. Biology Education
8. Business Administration
9. Computer Engineering Project
10. Computer Science 2
11. Criminology Research Project
12. Early Childhood Education
13. Economic Education
14. Education Research Project
15. Educational Administration and Planning Research Project
16. English
17. English Education
18. Entrepreneurship
19. Environmental Sciences Research Project
20. Guidance and Counselling Research Project
21. History Education
22. Human Kinetics and Health Education
23. Management
24. Maritime and Transportation
25. Marketing
26. Marketing Research Project 2
27. Mass Communication
28. Mathematics Education
29. Medical Biochemistry Project
30. Organizational Behaviour
31. Other Projects
32. Political Science
33. Psychology
34. Public Administration
35. Public Health Research Project
36. More Research Project
37. Transportation Management
38. Nursing

Education

Need a Project Writer for a Different Topic

• MSC PROJECT WRITING SERVICES
• MBA RESEARCH PROJECT WRITING SERVICES
• Research Project Writing Services in Lagos Nigeria (Professional Writers) -Law, MSc, MBA,PhD, Dissertations, Thesis, Assignment, Speech
• Masters Research Project Writer in Lagos Nigeria
• MBA Research Project Writer in Lagos Nigeria
• LOOKING FOR A WRITING SERVICES FOR AN URGENT ASSIGNMENTS OR PROJECT WORK
• PROFESSIONAL WRITING SERVICES IN LAGOS NIGERIA (TERM PAPER, SPEECH WRITING, ASSIGNMENT, THESES, DISSERTATIONS, RESEARCH PROPOSAL, PROJECT WRITING SERVICES etc)
• BUSINESS ADMINISTRATION RESEARCH PROJECT WRITER IN LAGOS NIGERIA
• CONSULT A RESEARCH PROJECT WRITER IN LAGOS NIGERIA (PH.D, MBA, MSC, M.ED, BSC)
• MANAGEMENT RESEARCH PROJECT WRITER IN LAGOS NIGERIA
• Education Research Project Writer in Lagos Nigeria
• Environmental Sciences Research Project Writer in Lagos Nigeria
• Guidance and Counselling Research Project Writer in Lagos Nigeria
• Human Kinetics and Health Education Project Writer in Lagos Nigeria
• Early Childhood Education Research Project Writer in Lagos Nigeria
• Christian Religious Studies(CRS) Research Project Writer in Lagos Nigeria
• Educational Administration and Planning Research Project Writer in Lagos Nigeria
• Political Science Research Project Writer in Lagos Nigeria
• Accounting Research Project Writer in Lagos Nigeria
• Economics Research Project Writer in Lagos Nigeria
• Management Research Project Writer in Lagos Nigeria
• Marketing Research Project Writer in Lagos Nigeria
• Public Administration Research Project Writer in Lagos Nigeria
• MBA Research Project Analysts
• In Need of MBA Research Project Writer in Nigeria
• MBA Dissertation Research Project Writer
• MBA Project writer
• EDUCATION DEPARTMENT PROJECT WRITING SERVICES
• BACHELOR OF SCIENCE (BSC) DEGREE PROJECT WRITING SERVICES(B.ED,B.A,B.SC)
• Early Childhood Education Research
• MASTER OF BUSINESS ADMINISTRATION (MBA) RESEARCH PROJECT WRITING SERVICES
• MASTER OF SCIENCE (MSC) RESEARCH PROJECT WRITING SERVICES
• POST GRADUATE RESEARCH PROJECT WRITER
• POST GRADUATE DIPLOMA (PGD) RESEARCH PROJECT WRITER
• MASTER RESEARCH PROJECT WRITER
• MASTER DEGREE RESEARCH PROJECT WRITING SERVICES
• POSTGRADUATE RESEARCH PROJECT WRITING SERVICES
• MASTERS RESEARCH PROJECT WRITING SERVICES
• RESEARCH PROJECT WRITER
• EXPERT IN RESEARCH PROJECT/THESIS/DISSERTATION WRITING SERVICES IN LAGOS NIGERIA
• HIRE A PROFESSIONAL BSC/HND RESEARCH PROJECT WRITER
• HIRE A PROFESSIONAL MBA/MSC RESEARCH PROJECT WRITER
• HIRE A PROFESSIONAL THESIS WRITER IN LAGOS NIGERIA
• SC/M.SC/MBA/PGD RESEARCH PROJECT WRITER IN LAGOS NIGERIA
• Master Degree Research Project Specialist/Writer in Lagos, Nigeria
• Hire A Research Project Writer in Lagos Nigeria
• Research Project Specialist in Lagos, Nigeria

Full Project – THE ROLE OF REVENUE MOBILIZATION ON ECONOMIC GROWTH AND DEVELOPMENT IN NIGERIA