ABSTRACT

The study examined the impact of fiscal policy on the manufacturing sector output in Nigeria. The data used was secondary data, sourced from Central Bank of Nigeria statistical bulletin. Multiple regression of ordinary least square (OLS) technique of analysis was used. The result from the study revealed that government expenditure had negative and insignificant impact on the manufacturing sector output in Nigeria while, government tax revenue had positive and significant impact on the manufacturing sector output in Nigeria. Based on the findings, the study concluded that fiscal policy had significant impact on the manufacturing sector output in Nigeria. The study therefore recommended the following; That government should refocus and redirect government expenditure towards the manufacturing sector for production of goods that will enhance economic growth and government should increase its budgetary allocation on the capital expenditures that will accelerate or enhance economic growth in Nigeria through manufacturing sector output, that government should create more awareness on the importance of tax payment which is one of the major sources of government revenue, the process of tax collection should be convenient to the tax payers and the revenue accrued from tax payment should be judiciously utilized such as in construction of good roads that will enhance economic activities geared towards achieving economic growth in Nigeria through manufacturing sector output.