CHALLENGES AND OPPORTUNITIES FOR IMPLIMENTING FISCAL DISCIPLINE IN POVERTY REDUCTION INITIATIVES IN KOGI STATE, NIGERIA: A POLICY PERSPECTIVE

This study rigorously assesses the impact of fiscal discipline on poverty reduction in Kogi State, Nigeria, from 2007 to 2017. Employing a quantitative approach, the research scrutinizes the state’s capacity to allocate resources effectively towards poverty alleviation. We examine the multifaceted challenges impeding fiscal discipline and explore potential opportunities for sustainable improvement. Data, meticulously extracted from the Kogi State Annual Report (2017) and the Office of the Auditor General to the Kogi State Government, are analyzed using Ordinary Least Squares (OLS) regression. The study investigates the effects of key fiscal variables – fiscal deficit, internally generated revenue (IGR), federal allocations, and VAT share – on budgetary allocations to capital expenditure, a critical proxy for poverty reduction efforts. The findings reveal a statistically significant negative impact of fiscal deficits and positive influences of IGR and federal allocations on poverty-sensitive expenditures. The paper argues that strengthening fiscal discipline through enhanced transparency, improved revenue mobilization, efficient expenditure management, and robust institutional reforms is paramount for poverty reduction and sustainable development in Kogi State.