In
the opinion of Akpakpan (1991), a government’s success in the use of fiscal
policy especially government expenditure, depends on its honesty, dedication
and the efficacy of its officiate. Akpakpan (1994) argue that in the case of
Nigeria, the pumping of money into the economy by the government contributed to
the persisted inflation in the country. Akpakpan opinion is that extra
government expenditure has been directed to inappropriate use.
He that, but for
the stealing of funds by people of position of authority extra expenditure
would result in inflation though with less harsh consequences. Thus, the extra
expenditure even in it’s proper use, would have caused inflation but because in
that case the money spent would have generated or raised incomes for many more
members of the society in the process, many more people would have been able to
cope with the resultant inflation.
According to Maro (1996), government
expenditure is utilized as a tool of deflationary economic policies to reduce
aggravates demand, hence reduced by cutting government expenditure. The
government reduces inflation by cutting expenditure and by increasing taxes.
Critics blame the government and the policies implemented for the inflation in
the country.
According to Akpakpan, the problem
of inflation is the consequence of the abused of fiscal policy, especially
government expenditure.