Dare Raphael AKINROLABU, Oluyemi Ayodele OLONITE & Olaniyi Ebenezer FOLAHANMI
There have been concerns on the low rate of development in the Nigerian atmospheric environments. Several stakeholders have submitted different views on this issue, which could be attributed to low tax rate and capital budget allocation which are all embedded in government policies. In this light, this study examined government policies on rural and national development in Nigeria, focusing on the individual impact of public expenditure and tax revenue on economic development in Nigeria. The study adopted ex-post facto. The data obtained were from secondary source through published annual reports by Federal Inland Revenue Service (IFRS) and CBN Statistical Bulletin between 2010 and 2024. Descriptive statistics and panel regression analysis were used for the analysis. The findings reveal that public expenditure has positive and significant effect on rural and national development in Nigeria. However, tax revenue shows a positive but insignificant effect rural and national development in Nigeria. It was concluded that public expenditure and tax revenue are capable of developing the economy, if employed judiciously. The study recommended that the three tiers of governments in Nigeria should increase spending on capital projects and consider other forms of revenue generation that the burden are not on the citizens to boost the current revenue base.