CHALLENGES OF FISCAL POLICY AS AN INSTRUMENT OF ECONOMIC STABILITY IN NIGERIA
BAKLE SEKYEN KUMSHIN
BUSINESS EDUCATION DEPARTMENT
FEDERAL COLLEGE OF EDUCATION PANKSHIN
Fiscal policy as one of the instruments of macroeconomic policy seeks at achieving economic stability of a country. It concerns with how government generate taxes and spend such income in order to bring desirable changes in the patterns of governance. The purpose of this study was basically to examine the challenges of fiscal policy in ensuring economic stability. This paper employs basically the descriptive method to examine the concept of fiscal policy. It equally identifies the objectives and roles of fiscal policy. The paper further examines fiscal policy as a tool for economic stability. The paper reveals that there are underlining challenges facing fiscal policy. The paper concludes that all the fiscal policy variables need to be effectively employed so as to ensure stability, as, without that, the goal of macro-economic stability will be a mirage. The study recommended among others that, the government should ensure a viral and stable economy by adjusting its fiscal instrument to suit current realities.
Key Words: Challenges, Fiscal Policy, Instrument, Economic Stability.