دانلود رایگان مقاله اقتصاد سیاسی کسری مالی در یک دموکراسی

Abstract

Studies on the impact of political considerations and gimmickry on the fiscal policy process in developing countries have largely been underappreciated and lacking. Therefore, this study set out to investigate how political actions impact fiscal deficits in Nigeria. The study employed descriptive and quantitative techniques using the Herfindahl index-based composition and turnover of the legislative and executive seats per party as well as that controlled by the ruling party. The results showed the prevalence of fiscal illusion among a significant proportion of voters; and that political considerations exert a significant impact on the implementation of fiscal deficitsin Nigeria. Budgetary institutions were found to exert an insignificant impact on the fiscal policy process. Revitalization of the country’s budgetary institutions and a reorientation and refocusing of media organizationsto ensure objectivity in the reportage of government activities is recommended.

5. Conclusion and policy implications

The analysis carried out so far in this study has been geared towards the investigation of the political economy of fiscal deficits in a democracy using Nigeria as a case study. The motivation for this stems from the recent criticisms leveled against economists in the country due to the failure of most of the country’s macroeconomic policies. The conclusions derivable from the literature reviewed is that while policy actions such as the implementation of fiscal deficits are dependent on economic, political and socio-cultural consideration, political and socio-cultural considerations sometimes outweigh sound economic considerations. The results derived from the study confirm tenability of this conclusion. The results also indicate the existence of “voter apathy and fiscal illusion” among Nigerian voters. In particular, the results of the quantitative analysis revealed that increases in the degree of press freedom which has been achieved since the advent of democracy in the country in 1999 has no significant impact on the ability of the average citizen to assess the cost of government activities, which confirm the existence of “fiscal illusion”. This may be the product of several factors among which is the fact that rural dwellers and the urban poor in Nigeria generally have to rely on government owned media houses for information on the activities of government. Such media organizations are usually characterized by a general lack of objectivity and high degree of pro-government bias which may account for the inability of most Nigeriansto adequately assesthe costs of government actions.

On the other hand, the non-significance of the index of political freedom implies the existence of a certain amount of voter apathy and disinterest in the costs of the actions of the various governments. The results are justified by the low levels of literacy and the general lack of appreciation of the costs of government activities which characterize the residents of rural communities, as well as the urban poor. This segment of the population in view of their high levels of poverty and relatively high levels of illiteracy and semi-illiteracy are generally more interested in the ability of the government in power to satisfy their immediate needs. Furthermore, the insignificance of the fiscal policy rating index further buttresses the argument that the fiscal policy process in Nigeria is highly politicized. This is because it indicates a general inability of the budgetary institutions to ensure the adherence to sound economic principles in the formulation and implementation of fiscal policy in the country.