IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 10 NO. 9 2024
DOI: 10.56201/jafm.v10.no9.2024.pg170.186

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Government Expenditure and Economic Development in Nigeria

Nzechukwu, Peace Chinenyenwa, Dr B. E. Onodi

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Abstract

The study examined the effect of government expenditure on economic development in Nigeria. To achieve the objectives of the study ex-post facto research design was adopted. Secondary data was used to generate data from CBN statistical bulletin. The data covered from 1990 to 2021. Data was analyzed using error correction regression model. The findings revealed that Government expenditure (capital expenditure, recurrent expenditure) has no significant effect on gross domestic product in Nigeria but no significant effect on per capital income in Nigeria. Based on the findings, the study recommended that public expenditure is an important fiscal instrument; therefore government can use it to control the economy by ensuring that budget allocation towards capital and recurrent expenditure are well utilized for increase in gross domestic product in Nigeria. The study also recommended that government should devise ways of maintaining an effective control to avoid wastage and misappropriation of funds for expenditure purposes. This will help in enhancing per capital income of the country.

keywords:

Government Expenditure, Economic Development, Per Capital Income, Capital

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