FISCAL RESPONSIBILITY LAW, FISCAL DISCIPLINE AND MACROECONOMIC STABILITY: Lessons from Brazil and Nigeria

Vincent N. Ezeabasili
2013 International Journal of Economics & Management Sciences  
This paper seeks to analyze the imperatives of Fiscal responsibility law. It draws some lessons from Brazil, situating these lessons in Nigeria. The paper explores some theoretical issues surrounding fiscal responsibility in an economy. Major features and similarities of the fiscal responsibility laws in Nigeria and Brazil are highlighted. Some of the fundamental flaws in Nigeria's democracy that impede economic development as well as the imperatives of the fiscal responsibly law in Nigeria are
more » ... law in Nigeria are analyzed. The paper concludes advisedly that strict adherence to the new fiscal policy law is bound to promote macroeconomic stability in Nigeria. Again, because Nigeria operates a federal system of government, each tier of government adopts its own fiscal policy without proper coordination or alignment and without caring about its systemic effect. The implication is decentralization of revenue assignment, raise a number of issues, such as the need for accountability relationse.g., those providing the services should be those raising the revenue and the need to adjust taxation to regional
doi:10.4172/2162-6359.1000141 fatcat:hvs2wgzryrhlfmuvd2r3an4lxa