NATIONAL BUDGET IMPLEMENTATION AND ECONOMIC GROWTH OF NIGERIA

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Authors

Onomuhara Oke Godwin, PhD ¹ & EVBOTA CEPHAS IMUENTINYAN, PhD ²

¹ Department of Accounting,

Faculty of Social and Management Sciences,

Igbinedion University, Okada, Edo State, Nigeria.

² Department of Accounting,

Faculty of Social and Management Sciences,

Western Delta University, Oghara, Delta State, Nigeria.

Abstract

This study investigated the impact of the national budget on economic growth in Nigeria. The specific objectives are: to determine the relationship between expenditure of public debt and economic growth, to identify the impact of public recurrent expenditure on economic growth in Nigeria, to study the effect of capital expenditure on economic growth in Nigeria. This research work covers the ministry of works and housing in Nigeria, members of all staff of all cadres. In the same way, all units or sections of the ministry participated in the study. Descriptive analysis was in the study

We will make use of the Ordinary Least Square (OLS) regression method to examine the impact of Human Capital Development on Economic Growth in Nigeria. The study uses Gross Domestic Product (as a proxy for Economic Growth) as the dependent variable while Human Capital Development will be measured by total government expenditure on health, total government expenditure on education, life expectancy rate and tertiary institution enrolment (as proxy for capital formation) are used as the independent variables. Time series data covering a period of 35 years will be estimated using Co-integration analysis which is an improvement on the classical Ordinary Least Square (OLS) technique.

It reveals that investment in the budget in the form of public capital expenditure, public recurrent expenditure and expenditure of public debt impacts positively on the economic growth in the long-run. Hence, all the proxies for human capital development exert a positive effect on the economic growth in Nigeria as supported by theoretical and empirical literatures, and therefore in line with a priori expectation.

Keywords: Budget, Expenditure, Government, Human capital development, Economic growth.

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