Abstract
This study examines the interplay between public budgeting, fiscal federalism, and inequality in Nigeria, proposing a theoretical framework to address systemic disparities in resource allocation and development. Using a descriptive qualitative research design, the study draws on secondary data from academic literature, government reports, and international organisations' publications to analyse the challenges and opportunities of fiscal policy reforms in Nigeria. The framework integrates three key components: fiscal decentralisation, equitable revenue sharing, andparticipatory budgeting, each aimed at promoting equity, efficiency, and accountability in public financial management. The application of this framework to Nigeria highlights the potential for reducing inequality through targeted fiscal reforms, despite challenges such as weak institutional capacity, corruption, and political economy constraints. The findings underscore the importance of aligning fiscal policies with principles of equity and accountability to achieve sustainable development and social justice. The study contributes to the broader discourse on public budgeting in developing countries, offering insights for policymakers and stakeholders seeking to address inequality in federal systems. Recommendations include strengthening fiscal capacity, reforming revenue allocation mechanisms, and promoting citizen participation in budgeting processes.