Assessment of the Impact of Budget Implementation on Economic Growth in Nigeria
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Abstract
This study assessed the impact of budget implementation on economic growth in Nigeria. Specifically, the study examined the effects of public capital and recurrent expenditures on Nigeria’s real gross domestic product. Correlational research design was adopted for this study. Secondary data relating to the study were obtained from World Bank Indicators (WDI), National Bureau of Statistics (NBS) and Central Bank of Nigeria(CBN)Statistical Bulletins in addition to other Journal publications. Gross Domestic Product was used as the dependent proxy, while Capital expenditure, Recurrent expenditure and Debt as the independent proxies. Using Endogenous Growth Model, and Auto regressive Distributed Lag (ARDL) bounds test to test the long run relationship between the variables, it was found that capital expenditure exerts positive and significant relationship with the Gross Domestic Product of Nigeria. Likewise, recurrent expenditure and gross domestic product show positive and significant relationship, and government debt and gross domestic product also show negative and significant relationship. Based on these it is recommended that government should prioritize their investment spending through physical capital and in human capital and avoid excessive debt burdens that can hinder long-term development.
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