EFFECT OF TAXES AND FEDERAL ALLOCATION ON BUDGET IMPLEMENTATION IN LAGOS AND OYO STATE
Abstract
This study examined the effect of value-added tax (VAT) revenue and federal allocation on capital budget implementation in Oyo State, Nigeria, with the specific objectives of assessing their individual impacts. Using an ex-post facto research design, secondary data spanning 2014 to 2023 were sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin and the Federal Inland Revenue Service (FIRS), and analyzed through regression analysis. Findings revealed that VAT revenue had a significant positive effect (β = 0.708, p = 0.015) on capital budget implementation, explaining 50.1% of the variance, while federal allocation showed a non-significant relationship (β = 0.399, p = 0.224). The study concluded that VAT revenue plays a crucial role in enhancing capital budget execution, and recommended strengthening VAT administration, diversifying revenue sources, and improving budget monitoring mechanisms to optimize capital project delivery in Oyo State. Further research was suggested to explore alternative revenue streams and comparative state-level analyses for broader policy insights.
Full-Text Access Notice
In accordance with the NERD Policy on promoting peer-reviewed publication, public access to the full text of a project, thesis or dissertation is restricted for three years, allowing the author and supervisors sufficient time to pursue peer-reviewed publication.
During this period, researchers with legitimate academic or research purposes may request authorisation directly from the author to enable NERD to release the indexed full texts of the work using the form below.