Fiscal Policy and Economic Development in Nigeria: A Study of the Economic Recovery and Growth Plan (ERGP) 2014-2019

Abstract

There is an implicit assumption in most policy studies that once a policy has been formulated the policy will be implemented. However, this is not often the case most especially in developing countries where governments tend to formulate broad, sweeping policies, and government bureaucracies often lack the capacity for their implementation. Within the framework of systems theory, this paper examined the impact of implementing fiscal policy on economic development with specific reference to the Economic Recovery and Growth Plan (ERGP) 2014-20-19. This study utilised qualitative research design to gain an insight into the impact of implementing fiscal policy on economic development. The researchers also consulted different sources to ensure quality of the paper. Subsequently, relevant sources of this research were fairly and professionally scrutinized, understood and tested with the available literature for the purpose of this research. This paper argues that it is not enough to make public policies; implementation is the key, because it is by implementing policies that economic development can be achieved in a country. This study discovers that, the implementation of the ERGP was the major factor that brought Nigeria out from recession. Though, the targets of the ERGP have not fully been met but it was able to contribute positively to the country's economy. It concludes that, the implementation of fiscal policy can bring about economic development in a country. Therefore, the ERGP plan should be revised and extended for more years in order to bring more positive impact on the Nigeria economy.