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ABSTRACT
This study analyzes fiscal instability of Government and output expansion, empirical evidence using Nigerian economy as case study.The expenditure of the Nigerian government over the years has been unstable and very wasteful. This is supported by the work of Adeoye (2003) who found out that majority of public investment are spent on unproductive activities. The result of the data obtained showed some fiscal policy instability measures of the government over the period of 1970 to 2012 had a negative impact on the economy variables like tax revenue , and interest showed a negative effect on the growth rate of the economy . It will show the instability in fiscal policy like tax, government expenditure, inflation, population, interest rate in the Nigerian economy and the negative impact it has in the growth of the economy.
The results from this study will recommendation(s) for the nigerian government on how to stablize her fluctuating policies and use it efiiciently for further growth of the economy . The recommendation includes that for a developing country such as Nigeria to maintain a sustainable growth, policy makers must study the economy critically and formulate policies to stimulate every stage of its development. Government on its part must implement these policies formulated with all diligence and commitment.
This study shows that the major drawback to successful implementation and most of the development project in the country is the non-challant attitude of most Nigerians towards public properties.project evaluation in order to curb wastages.it is recommended that general public should work with Government, make government accountable for its actions and ensure transparency in Government.
