ABSTRACT
This study examined the relationship between internally generated revenue and budget implementation of states in Nigeria, tracking the moderating role of debt management in the context of independent states. The study captured 18 states randomly selected across the 6 geopolitical zones of Nigeria. Panel based data were collected across the 18 states over a period of 10 years spanning from 2014 to 2023. Data collated were analyzed using correlations and panel pooled OLS, fixed effect, and random effect estimation. Result showed that internally generated revenue exerts significant positive effect on budget implementation performance of states (0.1357188, p < 0.05). domestic debt management has insignificant negative moderating effect on the relationship between internally generated revenue and budget implementation performance (-0.0142615 and 0.702 (p > 0.05). Also, the moderation effect of external debt management is negative and insignificant -0.0232833 and 0.596 (p > 0.05). This study concludes that government budget implementation of states in Nigeria can be significantly facilitated by improved level of internally generated revenue and that both domestic debt management and external debt management does not significantly moderation the interaction between internally generated revenue and budget implementation performance across states in Nigeria. Hence, state governments need to put in efforts to block all revenue loopholes in all ministries, units, and offices. In essence, state government should intensify the use of treasury single account, facilitate efficiency and effectiveness of anti-graft agencies as well as ensure regular independent auditing practices to keep public officials in check. In addition, state governments also need to boost existing revenue sources and activate dormant revenue sources. By doing this, state government can significantly increase internally generated revenue as well as enhance capacity to not only improve budget implementation but also attract creditor’s funds for fiscal financing.
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