Nigerian Journal of Banking and Financial Issues (NJBFI)
INTERNALLY GENERATED REVENUE AND ITS IMPACT ON BUDGET IMPLEMENTATION IN SOME SELECTED STATES IN NIGERIA (2013-2022)
Abstract
This study investigated internally generated revenue and budget implementation across some selected states in Nigeria. Also, the study adopted ex post facto research design using secondary data covering a period of 10 years (2013 to 2022). Data were collected from four states selected from each of the six geopolitical zones in Nigeria to make up 24 states. Data were sourced from the Board of Internal Revenue of each state and National Bureau of Statistics. This study adopted both descriptive and inferential statistical analysis. Descriptive statistics consisted of mean, standard deviation, maximum and minimum while the inferential statistical analysis covered Pearson correlation analysis and panel regression estimation effects. The study revealed that road tax (ROD) has a positive but not significant effect on capital expenditure of selected states in Nigeria to the tune of 0.0807 (p=0.608>0.05); direct assessment tax (DAT) has a positive significant effect on capital expenditure of selected states in Nigeria to the tune of 0.488 (p=0.005<0.05); Pay-As-You-Earn (PAYE) has a positive but insignificant effect on capital expenditure of selected states in Nigeria to the tune of 0.097 (p=0.131>0.05); Road tax (ROD) has a positive significant effect on recurrent expenditure of selected states in Nigeria to the tune of 0.0411 (p=0.039<0.05); Direct assessment tax (DAT) has a positive but insignificant effect on recurrent expenditure of selected states in Nigeria to the tune of 0.0212 (p=0.854<0.05); Pay-As-You-Earn (PAYE) has a positive but insignificant effect on recurrent expenditure of selected states in Nigeria to the tune of 0.0464 (p=0.343>0.05). From the analysis conducted, it was concluded that there was a statistically significant effect of internally generated revenue on budget implementation in some selected states in Nigeria.
