CONNECTIVITY AMIDST TAX REVENUE AND EDUCATION DEVELOPMENT: ASSESSMENT THROUGH ARDL

This study examines the impact of tax revenue on the education development in Plateau state, Nigeria. The major data for the study are obtained through the secondary source. The monthly data relevant for the study were extracted from the Plateau State Internal Revenue Service, and Plateau State Ministry of Finance from 2018 to 2023 where 72 observations were generated. The data collected were analyzed using regression, linear regression and ARDL. The population of this study covers the major sources of government tax revenue in Plateau State. It was discovered from ARDL analysis that PAYE has negative and significant effect on expenditure on education but Road tax and direct assessment have positive and significant effect on expenditure on education. With this submission, it is concluded that tax revenue significantly impacted expenditure on education positively in Plateau State, Nigeria. Government needs to formulate new proactive regulatory framework, and review or update the existing policies regularly for effectiveness and efficiency in Plateau state taxes administration in order to ensure that tax rates are kept moderate for easy compliance of the tax payers in the state. Also, public enlightenment should be done in Plateau state to educate and motivate tax payers for fulfilment of their civil righteousness promptly in order to ultimately enhance influx of revenue into the Plateau State’ purse for education development projects in the state.