Fiscal policy refers to the use of government spending and tax policies to influence economic conditions, especially macroeconomic conditions, including aggregate demand for goods and services, employment, inflation, and economic growth.

Unfortunately, Nigeria has been heavily bedevilled by gross indiscipline in fiscal policy execution especially in this recent democratic dispensation.

The widespread lack of fiscal discipline as seen in Nigeria's leadership can be attributed to poor co-ordination of fiscal policy among the three tiers of government by supposed drivers in governance. Also, there is a weak revenue base arising from high-marginal tax rate with very narrow tax base, resulting in low tax compliance. As a result of these and other factors, serious macroeconomic imbalances have emerged in Nigeria.

The State of States report is an annual publication of BudgIT which describes the fiscal policy of the 36 states of the federation and ranks them according to the fiscal activities for the year.

In the report, Dataphyte noted that even with the impact coronavirus had on economic activities of the states, the IGR of Ebonyi increased by 82% and another performance driver that was attributed to Ebonyi state’s emergence as one of the top five states in 2021 fiscal performance ranking was its emphasis on infrastructural investment which resulted in the State finishing 2nd in the 2021 ranking.

It's not a coincidence that such a remarkable feat was attained for the very first time in the history of Ebonyi State under the leadership of one man - His Excellency, Engr David Nweze Umahi FNSE FNATE. He has not only exhibited prudence in making the best of out of a restricted budget but has also shown a dedicated and focused approach to the full and timely execution of projects irrespective of the myriads them concurrently ongoing.

Gross mismanagement of national resources, prioritization of recurrent expenditures and non-fiscal policy compliance is an item in the crux of Nigeria's issues. A support for Engr. David Nweze Umahi is a clear enthronement of a new era that will mark judicious management of national resources and a better Nigeria.

Uraku Victor I.
Public Affairs Analyst.