Research Purpose: In light of the critical role of tax revenue in economic development, this study examines the relationship between various tax revenue components and public expenditure in Nigeria from 2011 to 2022. The investigation aims to elucidate how tax revenues, such as Companies Income Tax (CIT), Value-Added Tax (VAT), and Stamp Duties (SD), influence capital and recurrent expenditure.
Methodology: The study employs a quasi-experimental design and an ex-post facto method, analysing secondary data using SPSS (version 26.0). Hypotheses were tested using T-test and p-value statistics to determine the significance of the relationships between tax revenues and public expenditure.
Findings: The analysis reveals a positive and significant relationship between CIT, VAT, SD, Total Tax Revenue (TTR), and public expenditure. However, no significant relationship is found between Petroleum Profits Tax (PPT), Capital Gains Tax (CGT), and the dependent variables. Additionally, a significant difference is identified between capital expenditure and recurrent expenditure.
Conclusion: The study concludes that tax revenue is essential for advancing Nigeria's economy. Proper administration and collection of CIT, VAT, and SD are crucial for enhancing economic prospects, highlighting the importance of these tax components in funding public expenditure.
Recommendations: It is recommended that efforts be intensified to ensure the effective administration and collection of CIT, VAT, and SD. These measures are vital for improving the economic prospects of Nigeria by bolstering public expenditure and fostering economic growth.
You may also start an advanced similarity search for this article.