PSAF – May 2017 – L2 – SC – Q6 – Fiscal Policy and Public Finance

Outline and explain the macroeconomic objectives of Nigeria’s federal government.

Question

State and explain FIVE macroeconomic objectives of the Federal Government of Nigeria.

Answer

Economic Growth: Aiming for steady and sustainable growth in Gross Domestic Product (GDP) to improve the overall standard of living and increase employment opportunities within the country.
Price Stability: Ensuring a stable inflation rate to maintain purchasing power and protect the economy from the adverse effects of excessive inflation or deflation, which can disrupt economic stability.
Full Employment: Striving to achieve a low level of unemployment to increase productivity and reduce poverty, thereby promoting economic stability and enhancing social welfare.
External Balance: Maintaining a favorable balance of payments by encouraging exports and managing imports to prevent excessive trade deficits, which can deplete foreign reserves and affect currency stability.
Equitable Distribution of Income: Working to reduce income inequality through progressive taxation and social welfare programs, fostering economic justice and cohesion across various income groups.