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Effect of Budget Estimates on Economic Sector in Selected Local Government Areas of Akwa Ibom State

Oko Roseline Ali PhD, Ibeabuchi, Ani Ogechi PhD, Ogunli Glory Oritseweyinmi

Abstract

This study was carried out to investigate government budgeted expenditure on economic sector in selected local government Area of Akwa Ibom State. Economic sector was represented by government expenditure budget estimates on economic sector. Data was obtained from the budget estimates of the studied areas for 2016-20224 fiscal year. Ex-post-facto research design was adopted. The traditional panel least square regression (PLSR) was used in the model. The study applied panel data models on annual data of government budgeted expenditure and rural development within the scope. In order to circumvent endogeneity problems, panel estimation techniques of fixed and random effects were adopted in this study. Result of Haussmann test revealed that Recurrent and capital expenditure had a positive and non-significant effect on economic sector development. It was recommended that local government should increase their capital budget estimates and increase internal revenue efforts so as to raise funds for economic sector development.

Keywords

Budget estimateseconomic sectoreconomic developmentAkwa Ibom panel

References

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