Sectoral Fiscal Budget Allocations and Economic Growth in Nigeria
Abstract
This study examined the effect of sectoral budget allocations and economic growth in Nigeria. Time series data were sourced from Central Bank of Nigeria Statistical Bulletin. Real gross domestic product was modeled as the function of Budget allocation to agricultural sector, Budget allocation to education, Budget allocation to health, Budget allocation to housing and Budget allocation to works. The study adopted Ordinary Least square methods. The study found that that 88 % of changes in economic growth were accounted for sectoral budget allocated to the various sectors of the economy. Budget allocation to works has positive and statistically not significant effect on economic growth. Budget allocation to agricultural sector has positive and statistically significant effect economic growth. There was an inverse and statistically not significant effect of budget allocation to health, budget allocation to housing and budget allocation to works and economic growth of Nigeria economy. From the findings sectoral budget have both positive and negative effect on Nigeria economic growth. It recommends that Government should increase her allocation to the agricultural sector and monitor such allocated funds Government should prioritize capital expenditure in the sectors to ensure timely and transparent disbursement of funds, and strengthen accountability mechanisms in budget execution.
Keywords
Sectoral FiscalBudget AllocationsEconomic GrowthAgricultural BudgetHealth BudgetEducation BudgetWorks Budget
References
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