ABSTRACT

This study examined the impact of fiscal policy on economic growth of Nigeria for the period of 1981-2014 the study adopted the empirical analysis that was carried out to achieve the objectives mentioned were diagnostic tests such as unit root, co-integration, and ordinary least square (OLS), in which in GDP was regressed on government expenditure (GEXP) and inflation (INF) using annual time series data from CBN statistical bulletin. The study showed that GDP has a positive and significant relationship with government expenditure and inflation has a negative and insignificant relationship with GDP thus it was recommended that government spending should be controlled in order to control inflation rate as evidence this study has shown that inflation affects growth negatively.