EFFECT OF GOVERNMENT BUDGET IMPLEMENTATION ON ECONOMIC GROWTH IN NIGERIA

Martin Ifeanyi Ogbonna

Abstract


The study examined the effect of government budget implementation on economic growth in Nigeria between1999-2018. Specifically, the study sought to determine the effect of government recurrent expenditure on economic growth, effect of government capital expenditure on economic growth, effect of government supplementary expenditure on economic growth and effect of debt servicing on economic growth in Nigeria. Relevant theoretical, conceptual and empirical review was carried out. The study employed an ex-post facto research design. Secondary data was used for the independent and dependent variables respectively. Data was obtained from the Federal Government Budget office, Central Bank of Nigeria and Bureau of statistics through their websites for 20years period (1999-2018). Data collected were analysed using ordinary least square, F-statistics, and T-test were used to test, the overall significance of the regression equation and significance of each independent variables respectively. The results of the tests showed that there was statistically significant relationship between three of the independent variables namely: Government Recurrent Expenditure, Government Capital Expenditure and Government Debt Servicing, while Government Supplementary Expenditure is not statistically significant with dependent variable (Economic Growth) in Nigeria. The findings from the analysis revealed that all the independent variables had a significant combined effect on the economic growth in Nigeria. The study recommended for improved capital allocation, effective control of budget implementation among others.

Keywords


Budget, Budget implementation, Economic Growth, Expenditure.

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