ABSTRACT

The Nigerian government  is in need of alternative  source of revenue as the main stream of the nation's  economy(oil)  has been going southwards   in recent times. Taxation is me alternative source of revenue  to any government but the   igcrian tax system  fails to carry out this function  effectively  due to different  factors including taxevasion andavoidance. The study therefore,is to examine  if there is any relationship   between  tax revenue  and  capital  budget  implementationin Nigeria,given selected years.The design adopted in this study is the ex-post facto as data collected  where  from the year 2005-2016. The study was done with secondary dataobtained from the CBN statistical bulletins and the annual reports of the FIRS. Data collected  were analyzed  using  Pearson's    product  correlation coefficient andp-value test of significance.The findings in this study indicates that several taxes collected  by the Federal  government  is not employedin capital budget implementation   in Nigeria.There has been wide disparity between  the revenue  generated  through  tax and budgeted  capital expenditure   which can be improved.The study recommends  that government should strengthen the Nigerian tax system through reforms and improved incentives for tax administrators,  private investors should be encouraged with different incentives.