Abstract:
Abstract
he government encourages the manufacturing industrial sector by Tcoordinating scal measures and all the scal policies are blueprints and
methods used to generate income, make expenditures, and repay debts in
the process of governing the economy and improving industrial output.
erefore, the study examined the impact of scal policy on manufacturing
industrial sector in Nigeria from 1987 to 2022. e study adopted the ex post
facto research design and secondary data which are time series data and were
sourced from the Central Bank of Nigeria Statistical Bulletin December 2022.
e study further adopted the Auto-regressive Distributed Lag (ARDL)
approach to estimate the effect of scal policy indicators on manufacturing
industrial output in Nigeria and the paper revealed that based on the coefficient of
the government capital expenditures in Nigeria, oil taxation in Nigeria and public
external debt in Nigeria have a negative effect on manufacturing industrial output
in Nigeria while, government recurrent expenditures in Nigeria, non-oil taxation
in Nigeria and public domestic debt in Nigeria were found to have a positive effect
on manufacturing industrial output in Nigeria. However, the probability values of
the model revealed that government recurrent expenditures in Nigeria, oil
taxation in Nigeria, and public domestic debt in Nigeria have a signicant effect
on manufacturing industrial output in Nigeria while, government capital
expenditures in Nigeria, non-oil taxation in Nigeria, and public external debt in
Nigeria have an insignicant effect on manufacturing industrial output in Nigeria.
erefore, the government through the Federal Ministry of Finance and other
related Agencies should design a mechanism to track the scal policy indicators in
Nigeria to ensure that projects are industrially driven, especially the
infrastructural projects for a massive increase in industrial output in Nigeria but
manufacturing industrial output in Nigeria.
