Pages: (1-14 )
Abstract
The dearth of empirical studies that examine fiscal policy-led inclusive economic growth outcomes in Nigeria have become alarming. In an attempt to expand the frontier of knowledge on the subject matter, this study undertakes an empirical investigation on the alternative form of achieving inclusiveness of growth through adequate national fiscal health measures. This study unravels the relative consequence of fiscal health in achieving inclusive economic growth in Nigeria between 1986 and 2021, using the Johansen Cointegration, Error Correction Mechanism and Fully Modified Ordinary Least Squares (FMOLS).The findings show that fiscal health has negative and significant impacts on inclusive growth both in the short-run and long-run in Nigeria. The study concludes that fiscal health has a deleterious effect on inclusive growth in Nigeria. Therefore, the study recommends that government should ensure that debts or loan stocks are committed to capital or mega projects, which inadvertently will create job opportunities and/or lessen the debt burdens of the future generations, hence, marginal social benefits of the debt.
Keywords: Keywords: Fiscal Policy, Health, Inclusive Growth, Fully Modified Ordinary Least Squares, Nigeria,