OVERVIEW OF GOVERNMENT EXPENDITURE AND ECONOMIC DEVELOPMENT IN NIGERIA 2001 - 2020

Abstract

This study sought to investigate the effect of government expenditure and economic growth in Nigeria 2001-2021. Specifically, and among others, the study investigate the relationship between recurrent expenditure and gross domestic product (GDP), the relationship between recurrent expenditure and human development index (HDI), Investigate the relationship between recurrent expenditure and consumer price index (CPI). This study adopted both correlational and ex-post facto design. The population of the study was is the entire Nigeria, (the 36 states and federal capital territory). Covering Twenty (20) years (2001-2020). Secondary source of data were extracted from the Central Bank of Nigeria (CBN) statistical bulletin. The study period covered was twenty (20) years spanning from 2001 to 2020. This study utilized Descriptive statistic, Unit Root Test and Ordinary Least Square Regression method with the aid of E-View 12. The findings among others; showed that, there is a significant relationship between recurrent expenditure and gross domestic product of government expenditures and economic development in Nigeria. There is a significant relationship between capital expenditure and gross domestic product of government expenditures and economic development in Nigeria. There is no significant relationship between recurrent expenditure and human development index of government expenditures and economic development in Nigeria. Based on  the  findings,  this  study  concluded  that  there  is  a  significant  relationship between government expenditure and economic growth in Nigeria. It is suggested amongst others that the Government should maintain her budgetary allocation on recurrent expenditures as to improve the standard of social infrastructure amenities in country that will foster development. The study recommends better continues management of capital expenditure has it impact significantly on gross domestic product, that government should ensure that her expenditure on recurrent should be managed and monitored at the implementation stage to enhance comparable achievement viz-a-viz on economic growth.