Impact of Revenue-Expenditure Gap on Economic Outputs in Kwara State

Main Article Content

Peter Kingsanjo Kolawole
Hassan Mohammed Kamaldeen


Internally Generated Revenue has emerged in recent times as a crucial aspect of economic growth and development. Drawing from some of the recent literature on public expenditure, this study estimated the impact of revenue-expenditure gap on output in Nigeria with a case study of Kwara State. The study employed Auto-Regressive Distributed technique on data obtained from the Kwara State Ministry of Finance, Planning and Economic Development for its analysis. The results of the study show that there has been an upward trend in the revenue-expenditure gap in Kwara State. The implication is that the government expenditure has been more than its revenue and later translated into a deficit budget for the state. The findings also indicate that this gap slows the growth of economic outputs in Kwara State. Therefore, the Nigerian government should take urgent and adequate steps to increase their internally generated revenue.

Keywords: Revenue-Expenditure Gap, Economic Development, Economic Output, Estimation, Nigeria

Article Details

Impact of Revenue-Expenditure Gap on Economic Outputs in Kwara State. (2024). African Journal of Management and Business Research, 15(1), 155-165.

Copyright (c) 2024 Peter Kingsanjo Kolawole, Hassan Mohammed Kamaldeen (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Peter Kingsanjo Kolawole, Kwara State University, Malete, Nigeria.

Department of Economics and Development Studies,

Kwara State University, Malete, Nigeria.

Hassan Mohammed Kamaldeen, Kwara State College of Education, Oro, Nigeria.

Department of Economics,

Kwara State College of Education, Oro, Nigeria.

Abdulkareem T.A (2005). Report of the Accountant General Kwara state of Nigeria and the financial statement for the year 2005

Abiola G.A & Ehigiamusoe U.K (2014). Analysis of internally generated revenue and its implications on fiscal viability of state governments in Nigeria. Journal of Empirical Economics, 2(4):216-228.

Adesoji, Adenugba, A, Chike, F.O & Ogechi, C. F. (2013) The Effect of Internally Generated Revenue on Infrastructural Development: A study of Lagos State Internal Revenue Service. Journal of Educational and Social Research, 3(2); 2239-978

Adejoh, E. & Sule, J.G. (2013). Revenue Generation: It's Impact on Government Developmental Efforts (A study of Selected Local Council in East Senatorial District). Global Journal of Management and Business Research.13 (4).

Adenugba, A. A. & Ogechi, C. F. (2013), "The Effect of Internal Revenue Generation on Infrastructural Development. A study of Lagos State Internal Revenue Service", Journal of Educational and Socials Research 3 (2), 419 - 436

Agya A A, Ibrahim Y M and Emmanuel E (2015). Internal Revenue Generation in Taraba State, Nigeria: Problems and Prospects. United Kingdom ISSN 2348 0386 Vol. 111, issue 2, Feb 2015

Ahmed, B.B, Salihu, A.M; Mohammed, A, (2015). Expenditure and Internally Generated Revenue Relationship: An Analysis of Local Governments in Adamawa State, Nigeria, Journal of Arts, Science and Commerce, 6(3).

Akpo, U. (2009). The people as government: Imperatives of tax payment. Being a paper presented at the 1st Akwa-Ibom State revenue summit. April 6 and 7, 2009, Uyo.

Asimiyu, G. A, & Uyikizito, E. (2014): Analysis of Internally Generated Revenue and its Implication on Fiscal Viability of State Governments in Nigeria

Bariyama, D.K & Nwokah, N.G (2009).Boosting Revenue Generation by Government in Nigeria: The tax Consultant Option Revisited, European Journal of Social Sciences, 8(2).

Cordelia O.O, Micheal C E & U I (2018). The impact of internally generated revenue on economic development in Nigeria, accounting and finance research 7(2).

Dagwom D (2017), empirical analysis of the contribution of state IGR to economic growth of Nigeria: a panel study.

Edogbanya, A; & Ja'afaru, G.S (2013): Revenue Generation: It's Impact on Government Developmental Efforts (A Study of Selected Local Councils in Kogi East Senatorial District). Global Journals Inc (USA), global Journal of Management and Business Research.13 (4); online ISSN: 2249-4588 and print ISSN: 0975-5853.

Ejoh N.O, Okpa, I.B & Ogon, A. E (2016): The Relationship between Revenue Diversification and Government Spending in Cross River State. IOSR Journal of Economics and Finance (IOSR-JEF) Vol. 7, Issue 1

Kw-irs kwara state internal revenue service kwareve news special edition March 2016 volume 2 issue 4.

Mathew A.A (2014) the impact of tax revenue on Nigeria economy: (A case study of federal board of Inland Revenue)

Mbah A.N & Onuona J.K (2018). Effect of Internally Generated Revenue on Infrastructural Development of south East states of Nigeria, IIARD International Journal of Economics and Business Management ISSN 2489-0065 vol.4 No 7 2018

Moshood O S (2015). Local Government Revenue and Performance: A study of Selected Local Governments in Kwara State, Nigeria. African Journal of Politics and Society, 1 (1)

Nnanseh, M; & Sunday S.A. (2013): Internally Generated Revenue (IGR) and Infrastructural Development in Akwa Ibom State, European Journal of Business and Management Vol. 5, No31 ISSN 2222-1905

Nto, P. O. O. (2014). New face of Abia tax policy. An address presented at the Maiden Abia revenue summit on July 10, 2014, Umuahia.

Ogundayo G.O, Onakoya A.B & Afintini O. I (2017) Taxation revenue and economic growth in Africa.

Olusola, O.O, (2011): Boosting Internally Generated Revenue of Local Governments in Ogun State, Nigeria. A Study of Selected Local Governments in Ogun State., European Journal of Humanities and Social Sciences 8 (1)

Olusola O.O, Siyanbola & Tunji T. (2014) The role of internally generated revenue In local government in Nigeria. Journal of Business Management and Social science Research (IBM&SSR) 3 (5)

Oseni, M. (2013): Internally Generated Revenue in Nigeria: A Panacea for State Development. Journal of Humanities and Social Sciences Vol. 21, No 1 Block, W. (1989). "The Justification of Taxation in the Public Finance Literature: A Critique". Journal of Public Finance and Public Choice, 3, pp. 141-158.

Oti P.A & Odey F.I (20i4) Analysis of Internally Generated Revenue and Capital Expenditure utilization in Cross River State, Nigeria. International journal of development and economic sustainability. 6 (1), 9-18

Pashev, K., (2005). "Tax Compliance of Small Business in Transition Economies: Lessons from Bulgaria". Working paper 05-10, Andrew Young School of Policy Studies: Atlanta Georgia Choice" Journal of Financial Economics 3, 215-231.

Udoudo, P. U., & Ekpeyong, E. J. (2013). Modelling Internally Generated Revenue (IGR) of local government in Nigeria. Mathematical Theory and Modelling, 3(14)

Wenli Y (2008) The Impact of revenue Diversification and Economic Base on Revenue Stability: An Empirical Analysis of County and State Governments (2008) University of Kentucky, Doctoral Dissertations. 619

Solow (1959) Solow Model in the Empirics of Growth and Trade Erich Gundlack Kiel Institute for the World Economy Germany revised, January 2007.