Assessing the Influence of Tax and Non-Tax Revenue on Budget Implementation in Sub-Saharan African countries: A Case Study of Nigeria
Elizabeth Oluwatoyin ALADE *
Department of Accounting, Ekiti State University, Ado-Ekiti, Ekiti State, Nigeria.
*Author to whom correspondence should be addressed.
Abstract
This study examined the factors influencing budget implementation in Nigeria, it specifically examined the effect of including tax revenue from direct, indirect, and corporate taxes, as well as non-tax revenue from fees, fines, and grants on budget implementation in Nigeria. The population of the study consisted of sub-Saharan African countries however, only Nigeria was chosen as the sample from the populations. The data was collected from the audited financial report of the federal board of Inland Revenue covering the period of 2012 to 2022. The collected data were analyzed using descriptive statistics, correlation analysis, and Generalized Least Squares (GLS) estimation techniques are employed to analyze data from 160 observations. From the results of the findings, the study revealed the significant positive effects of tax revenue from indirect taxes, corporate taxes, and non-tax revenue from fees and fines on budget implementation. However, tax revenue from direct taxes unexpectedly exhibits a negative effect in the model analyzing non-tax revenue. These findings underscore the importance of diversifying revenue sources and improving fiscal management practices for effective budget execution and sustainable economic development in Sub-Saharan African countries like Nigeria. The study provides valuable insights for policymakers, practitioners, and researchers in the field of public finance and budgetary management in Nigeria and other Sub-Saharan African countries. The study recommends that the government should prioritize strategies for revenue diversification, strengthening institutional capabilities in revenue mobilization and fiscal management, and conducting further research to explore the underlying factors influencing revenue dynamics and their implications for budget execution. By leveraging these insights, stakeholders can contribute to improving revenue mobilization, enhancing budget execution outcomes, and promoting sustainable development.Top of Form
Keywords: Tax revenue, non-tax revenue, budget implementation, direct taxes, corporate taxes