Abstract
The study examined the implementation of budget and economic growth in Nigeria from 2014-2018. The objective is to investigate the impact of Public Capital Expenditure (PCE), Public Recurrent Expenditure (PRE) and Public Debt Expenditure (PDEX) on economic growth of Nigeria during the period under review. Using ex-post factor research design, data on PCE, PRE and PDEX (explanatory variables) and economic growth (dependent variable) proxied by Gross Domestic Product (GDP) were collected from Central Bank of Nigeria (CBN) and National Bureau of Statistics (NBS) reports. The data were empirically analyzed using multiple regressions. The results revealed that PCE and PRE have significant impact on GDP except PDEX that do not show any impact. The study recommended that government should pay attention to budgeting more of her resources (revenues) on PCE and PRE, implement and monitor the budgets for desired economic growth.
Highlights
The Federal budget of Nigeria is a written document that shows in monetary terms the planned government expenditure and the total revenues of the country from the two (2) major sources – oil and taxation in the upcoming year
Ho2: Government recurrent expenditure has no significant impact on the growth of Nigerian economy Ho3: Government expenditure on public debt has no significant impact in the growth of Nigerian economy
The study concludes that public spending on capital and recurrent expenditure impact significantly on economic growth in Nigeria
Summary
The Federal budget of Nigeria is a written document that shows in monetary terms the planned (expected) government expenditure and the total revenues of the country from the two (2) major sources – oil and taxation in the upcoming year. As a planning tool various governance micro and micro economic policies for long-term self-sustainable growth are normally expressed in the annual national budget It is short-term planning instrument where government intention of tackling issues that bother on economic growth of the nation such as unemployment, inflation, interest rate, per capital income, national income (NI), redistribution of income in the society, demand stimulation measures for local products and so on are revealed. Budget encompasses both fiscal and monetary policy measures normally categorized and presented each year under four (4) distinct headings namely; (i) review of economic performance in the immediate preceding year (ii) total revenue and planned expenditure on capital and recurrent expenditure (iii) total federation account revenue and other distribution to the three tier of government and (iv) proposal of fiscal and monetary policy changes. The parameter used in assessing the total economic performance of the nation include (i) macro and micro economic stability (ii) overall real growth in gross domestic product (GDP) and (iii) fiscal operation assessment to determine whether there was budget surplus or deficit
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