EDTD’s work on federal fiscal policy analyzes revenues, government spending and tax policies to influence economic conditions, especially macroeconomic conditions. These include aggregate demand for goods and services, employment, inflation, deficits and economic growth. but always within the context of the overall economy.
Economic Development and Trade Division (EDTD) believes that during a recession, the government may lower tax rates or increase spending to encourage demand and spur economic activity and conversely, to combat inflation, it may raise rates or cut spending to cool down the economy. Public investments such as education, public health, and infrastructure are a fundamental element of any pro-growth budget that EDTD seeks to address the problems of slow growth, stagnant wages, and a lack of consistent full employment in Nigeria and across the world.
Growing the economy, creating jobs, and lifting stagnant wages are among the most important goals for EDTD economic policy. The federal budget is the embodiment of our nation’s priorities, but recognizes that the state of budget balance is simply a tool to meet larger economic goals, not an end-goal in itself.