{"id":9467,"date":"2022-11-18T07:59:34","date_gmt":"2022-11-18T07:59:34","guid":{"rendered":"https:\/\/file.currentschoolnews.com\/?post_type=product&p=9467"},"modified":"2022-11-18T13:18:38","modified_gmt":"2022-11-18T13:18:38","slug":"the-impact-of-government-expenditure-on-economic-growth-in-nigeria","status":"publish","type":"product","link":"https:\/\/pastexamquestions.com\/product\/the-impact-of-government-expenditure-on-economic-growth-in-nigeria\/","title":{"rendered":"The Impact of Government Expenditure on Economic Growth in Nigeria"},"content":{"rendered":"

– The Impact of Government Expenditure on Economic Growth in Nigeria –<\/strong><\/span><\/p>\n

Download The Impact of Government Expenditure on Economic Growth in Nigeria<\/strong><\/span>. Students who are writing their projects can get this material to aid their research work.<\/span><\/span><\/p>\n

Abstract<\/strong><\/h3>\n

This study examines the impact of government expenditure on economy growth in Nigeria. In the light of the empirical review and other discussions, a number of questions arose as to whether there is significant relationship between government recurrent expenditure and economic growth of Nigeria,<\/p>\n

if there is significant relationship between government capital expenditure and economic growth of Nigeria as well as to determine if there is significant relationship between government transfer expenditure and economic growth of Nigeria.<\/p>\n

Using the Ordinary Least Square (OLS) regression technique with the aid of computer software, for a 1993 \u2013 2012 time series data, the empirical findings revealed among other things, that government investment expenditure has a significant impact on Nigeria\u2019s economic growth.<\/p>\n

The study is recommends that Transfer expenditure such as provident fund, pensions and other Social Security benefits such as NHIS scheme positively affect the economic growth of Nigeria.<\/p>\n

And by using government expenditure to achieve supply-side improvements in the macro-economy, such as spending on education and training to improve labour productivity,<\/p>\n

the economic growth of Nigeria increases it also considers that Administration expenditure, Capital and recurrent expenditure also affect the economic growth of a country.<\/p>\n

On the strength of these evidences, this work recommends that the Federal Government should be very conscious about how it uses the fiscal policy to regulate government expenditure; government should be consistent with its expenditure\/payments as this will stimulate economic growth.<\/p>\n

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Introduction<\/strong><\/h3>\n

1.1 Background of the Study<\/strong><\/p>\n

Over the past decades, the public sector spending has been increasing in geometric term through government various activities and interactions with its Ministries, Departments and Agencies (MDA\u2019s), (Niloy et al. 2003)<\/p>\n

. Although, the general view is that government expenditure either recurrent or capital expenditure, notably on social and economic infrastructure can be growth enhancing although the financing of such expenditure to provide essential infrastructural facilities including transport,<\/p>\n

electricity, telecommunications, water and sanitation, waste disposal, education and health can be growth retarding (for example, the negative effect associated with taxation and excessive debt).<\/p>\n

The size and structure of government expenditure will determine the pattern and form of growth in output of the economy (Taiwo, and Abayomi, 2011). The structure of Nigerian government expenditure can broadly be categorized into capital and recurrent expenditure.<\/p>\n

The recurrent expenditure are government expenses on administration such as wages, salaries, interest on loans, maintenance etc., whereas expenses on capital projects like roads, airports, education, telecommunication, electricity generation etc., are referred to as capital expenditure.<\/p>\n

One of the main purposes of government spending is to provide infrastructural facilities (Taiwo and Abayomi, 2011).<\/p>\n

Nurudeen and Usman (2010) added that, in Nigeria, government expenditure has continued to rise due to the huge receipts from production and sales of crude oil, and the increased demand for public (utilities) goods like roads, communication, power, education and health.<\/p>\n

Besides, there is 2 increasing need to provide both internal and external security for the people and the nation. Available statistics, according to Nurudeen and Usman (2010) show that total government expenditure (capital and recurrent) and its components have continued to rise in the last three decades.<\/p>\n

For instance, government total recurrent expenditure increased from N3, 819.20 million in 1977 to N4, 805.20 million in 1980 and further to N36, 219.60 million in 1990.<\/p>\n

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