EFFECT OF TAX REVENUE ON PUBLIC DEBT AND CAPITAL EXPENDITURE IN NIGERIA

Ntekpere Ukeme A. and Olayinka Ifayemi M. ()
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Ntekpere Ukeme A.: Department of Accounting, Postal: Babcock University, Ogun, Nigeria
Olayinka Ifayemi M.: Department of Accounting, Postal: Babcock University, Ogun, Nigeria,, https://journal.citn.org/

Journal of Taxation and Economic Development, 2020, vol. 19, issue 2, 82-103

Abstract: The citizens' need for accountability by the governments' continuous receipt of tax revenue without a corresponding reduction in public debt and increase in capital expenditure has raised questions on the effect of tax revenue on public debt and capital expenditure. It is against this background that the study examines the effect of tax revenue on public debt and capital expenditure in Nigeria during the period 1999 - 2018. Secondary data was sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin. It adopted the ordinary least square regression method by E-views program to study the effect of the independent variables (represented by value added tax, company income tax, petroleum profit tax and customs and excise duty) on the dependent variable (external debt, internal debt and capital expenditure). The data treatments used for the times series secondary data are Descriptive Statistics, Unit Root using Augmented Dickey–Fuller, Co- integration tests using Bounds Test and Vector Error Correction Model. The findings revealed that tax revenue had a statistically significant, positive and negative effect of on public debt and capital expenditure. Tax revenue had both positive and negative effects on external debt in Nigeria (R2 = 0.789, f = 0.00010, p

Keywords: Capital Expenditure; Company Income Tax; Customs and Excise Duty; External Debt; Internal Debt; Petroleum Profit Tax; Public Debt; Tax Revenue; Value Added Tax (search for similar items in EconPapers)
Date: 2020
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