ABSTRACT
The study examined the impact of public expenditure on economic growth of Nigeria for the period 1980-2019. Data were sourced from the Central Bank of Nigeria statistical Bulletin. Real gross domestic product proxy for economic growth was adopted as the dependent variable while government recurrent expenditure on administration, education, health, economic services, transfers as well as government capital expenditure on social and community services and economic services were the independent variables. The Augmented Dickey-Fuller unit root test was employed to test the stationarity of the variables. The Johansen Co-integration test was also carried ot to test the long-run relationship of the variables. The result showed that there existed a long-run relationship among the variables in the study. The Vector error correction model was also adopted in data analysis. The empirical results showed that recurrent expenditures on administration had a negative and significant impact on economic growth in Nigerian in both the long-run and short-run; recurrent expenditures on education had positive and significant impact on economic growth in the long-run and a positive and insignificant impact on the short-run; recurrent expenditures on health had a positive and significant impact on economic growth in the long-run but a positive and insignificant impact in the short-run; recurrent expenditure on economic services had positive and significant impact on economic growth in the long run and short-run; recurrent expenditures on transfers had positive and significant impact on economic growth in the long-run but a negative and significant impact in the short-run; capital expenditure on social and community services had a negative and significant impact on economic growth in the long-run and short-run and lastly, capital expenditure on economic services had a positive and significant impact on economic growth in` the long-run but a positive and insignificant impact in the short-run. The study therefore recommended, amongst others, that government should increase its expenditure on administration especially in the area of security and internal defense and utilize them effectively and efficiently in order to improve the enabling environment on which Nigerians carryout their daily activities; government should adequately fund the educational and health sectors of the economy and at the same time ensure effective utilization of funds in these sectors to improve the welfare and productivity of their workforce, thus encouraging growth of the economy. These measures would adequately enhance economic activities of Nigeria which would in turn, induce growth in the Nigerian economy.
TABLE OF CONTENTS
Cover Page i
Title Page ii
Declaration iii
Certification iv
Dedication v
Acknowledgements vi
Table of
Contents vii
List of Tables xi
List of Figures xii
Abstract xiii
CHAPTER 1:
INTRODUCTION
1.1 Background to the Study 1
1.2 Statement of the Problem 10
1.3 Research Questions 12
1.4 Objectives of the Study 12
1.5 Hypotheses 13
1.6 Scope of the Study 14
1.7 Limitations of the Study 14
1.8 Significance of the Study 14
CHAPTER
2: LITERATURE REVIEW
2.1 Conceptual Framework 17
2.1.1 Nature and composition of public expenditure 19
2.1.2 Principles of public expenditure 21
2.1.3 Capital expenditure and growth of the
Nigerian economy 22
2.1.4 Recurrent expenditure and growth of the Nigerian
economy 25
2.1.5 Effects of public expenditure on Nigerian economy 28
2.2 Theoretical Framework 31
2.2.1 Wagner’s theory of increasing state activities 31
2.2.2 Peacock and Wiseman theory 32
2.2.3 Musgrave theory 33
2.2.4 Keynesian theory 34
2.3 Review of Related Empirical Literature 36
2.3.1 Summary of literature review in tabular
format 91
2.4 Research Gap 97
CHAPTER 3: METHODOLOGY
3.1 Research Design 99
3.2 Sources of Data 99
3.3 Model Specification 100
3.3.1 Recurrent expenditure and economic growth 101
3.3.2 Capital expenditure and economic growth 102
3.4 Techniques for Data Analysis 102
3.4.1 Unit root test 103
3.4.2 Co-integration test 104
3.4.3 Vector error correction model (VECM) 105
3.5 Description and Justification of Research
Variables 107
3.5.1 Dependent variables 107
3.5.2 Independent variables 108
CHAPTER
4: DATA PRESENTATION, RESULTS AND
DISCUSSION
4.1 Data Presentation 110
4.2 Analysis of Data 112
4.2.1 Trend analysis 112
4.2.2 Descriptive statistic 121
4.2.3 Test of stationarity 125
4.2.4 Co-integration test (model one) 126
4.2.5 Co-integration test (model two) 128
4.2.6 Estimation of the impact of government
recurrent expenditure
on economic growth (model one) 129
4.2.6.1 Vector
error correction model (VECM): long-run dynamics` 129
4.2.6.2 Vector
error correction model (VECM): short-run dynamics 132
4.2.7 Estimation of the impact of government
capital expenditure
on economic growth (model two) 135
4.2.7.1 Vector error correction model (VECM): long-run
dynamics 135
4.2.7.2 Vector error correction model (VECM):
short-run dynamics 136
4.3 Test of Hypotheses 139
4.4 Discussion of Findings 142
CHAPTER 5: SUMMARY, CONCLUSION AND
RECOMMENDATIONS
5.1 Summary of Findings 148
5.2 Conclusion 149
5.3 Recommendations 150
5.4 Contribution to Knowledge 152
5.5 Recommended Area for Further Research 154
References 155
Appendices I 166
LIST OF TABLES
2.4.1 Summary of Literature Review 91
4.1: Real Gross Domestic Product
(RGDP), Recurrent Expenditure
on Administration
(READM), Education (REED), Health
(REHLT), Economic
Services (REES) and Transfers (RETRA)
and Capital Expenditure
on Social and Community Services
(CESCS) and Economic
Services (CEES) N’Billion 111
4.2: Descriptive Statistic 121
4.3: Augmented Dickey-Fuller (ADF)
Test 125
4.4: Lag Selection Criteria (Model 1) 126
4.5: Johansen Co-integration
Results (Model 1) 127
4.6: Lag Selection Criteria (Model 2) 128
4.7: Johansen Co-integration
Results (Model 2) 129
4.8: Vector Error Correction Model
(VECM) Short-run
Dynamics (Model 1) 133
4.9: Vector Error Correction Model
(VECM) Short-run
Dynamics (Model 2) 137
4.10: Summary of Analysis 139
LIST
OF FIGURES
2.1: Relationship
between government expenditure and
economic growth 17
2.2: Composition of public
expenditure 20
4.1: Trend of real gross domestic
product (RGDP) 112
4.2: Trend of recurrent expenditure
on administration (READM) 114
4.3: Trend of recurrent expenditure on education (REED) 115
4.4: Trend of recurrent expenditure
on health (REHLT) 116
4.5: Trend of recurrent expenditure
on economic services (REES) 117
4.6: Trend of recurrent expenditure
on transfers (RETRA) 118
4.7: Trend of capital expenditure
on social and community
services (CESCS) 119
4.8: Trend of capital expenditure
on economic services (CEES) 120
CHAPTER 1
INTRODUCTION
1.1
BACKGROUND
TO THE STUDY
Government expenditure remains one potent instrument
for influencing growth of economies all over the world, Nigeria inclusive. All
over the world, governments seek to carter for their citizens and the society
at large, through their expenditure as captured in their annual budgets. The state spends on defence, agriculture, industry,
pensions and gratuities as well as on education, healthcare and other social
services. It also spends on servicing
national debts, capital investments as airports and infrastructural
developments, etc. Government also
spends on its own maintenance as well as on other countries and
governments. Therefore, government or
public expenditure could be seen as the expenses of government for its own
maintenance, the society and the economy as a whole (Nura and Mustapha,
2016).
With the enthronement of a
democratically-elected government in Nigeria since 1999 to date, public
expenditure being expenses of government to maintain its administration, the
society and economy at large, has been on the increase (Ifere, Okoi and Eko,
2014). Government has always devoted
considerable amount of its resources to provide welfare facilities with the
cardinal objective of improving the level, quantity and quality of these facilities,
e.g. education, health, security etc. to enhance economic growth and wellbeing
of the citizens. Daniel, Simeon and
Itode (2018), posited that the state is increasingly getting involved in
economic activities as well as transfer payments to other countries. As a result of this, they have argued that
public expenditure has maintained an upward trend over time in virtually all
the countries of the world.
The state’s major items of public
expenditure today in Nigeria are administration, economic services, social and
community services and transfers (Shakirat, 2018). These expenditures could be classified into
recurrent expenditure and capital expenditure.
Recurrent expenditures are expenses of government which occur regularly
throughout the year. They must be
incurred on a regular basis if the functions and machinery of government must
move on. Good examples include: salaries of employees of government, expenses
on the maintenance of infrastructural facilities, repairs, money spent on
general administration (Nwaeze, 2016).
Capital expenditure, on the other hand, includes expenses of government
on the acquisition of things of permanent nature such as roads and building
construction, hospitals and sea ports, electrical infrastructure as well as
educational infrastructure (Okafor and Kenneth, 2016). The relationship between public expenditure
and development has always attracted considerable interests on the part of
economic researchers both at the theoretical and empirical levels. The rationale for the existence of government
anywhere, Nigeria inclusive, could be viewed from the perspective of the
institutions of property rights, value of law, governance, security, enforcement
of the rule of law (Ogbuagu and Ekpenyong, 2016). Nigeria is a federation with
three tiers of government that has multiple and diverse ethnic and other
social-political differences, and which often determine the volume and rate of
spending. The revenue profile of the
nation of which oil forms a greater percentage as well as other institutional
factors such as institutional quality, political instability, characteristics
of political regimes and social characteristics influence public spending and
economic growth in Nigeria (Nwaoha, Onwuka and Ejem, 2017).
According to Jhingan (2009), public expenditure could
affect economic growth in diverse ways. He asserted that increase in public
expenditure tends to raise national income, employment, output and price. An
increase in public expenditure during deflation increases the aggregate demand
for goods and services and leads to a large increase in income via the
multiplier process. It has the effect of raising disposable income, thereby
increasing consumption and investment expenditures of the people.
He further stated that public expenditure on such
public works as roads, canals, dams, parks, schools, hospitals, buildings and
on such relief measures as unemployment, insurance and pensions increase
income, employment and above all, the productive capacity of the economy.
However, he noted that the effectiveness of public expenditure primarily
depends upon the public works programme.
Drition and Lirim (2017) posited that public spending
plays a vital role in propelling economic growth. Through public spending, more
funds are channelled into the economy and if that is done, employment is
expected to rise so also is income. A rise in income is accompanied by a rise
in aggregate demand and this thus leads to an increase in output and hence, economic
growth.
As the public sector size continued to grow
relatively, the need for an appropriate mechanism that would ensure efficiency
in resource allocation arose. To fill this perceived gap, the budget, which
contains a package of public expenditure and revenue plan of the government for
the year readily come to be a veritable tool for controlling, monitoring and
relating government expenditure plans to policies of finance.
In this study, the recurrent variables of interest
include government expenditures on administration. This reflects expenditure on
defence, internal security and general administration. For instance, personnel
costs and overhead costs such as travel and transport, utility services,
telephone services, stationery, maintenance of office furniture and equipment;
entertainment and hospitality. Recurrent
expenditure on education includes all regular expenses made in the educational
sector for the building, processing and development of human resources in the
country for development purposes. These
expenditures are made on educational institutions across the nation. Recurrent expenditure on health reflects
regular and non-stopping expenses made on health sector of the nation –
hospitals and other health facilities and institutions in the country.
Recurrent expenditure on economic services reflects regular expenditures on
agriculture and natural resources, construction, manufacturing, mining, quarrying,
transport and communication. These
expenditures are needed to ensure continuous activities in the sector to
enhance growth and development. Lastly,
recurrent expenditure on transfers is disaggregated into public debt interest
charges, capital repayments, external financial obligations, pensions and
gratuities and others. The capital expenditure variables of interest in
this study include capital expenditure on social and community services which
reflects all major expenditures for the acquisition of land and buildings and
other non-financial assets used for more than one year in the health and
education sectors of the Nigerian economy.
The other is capital expenditure on economic services which has to do
with major capital expenses of government for acquiring land for building and
other non-financial assets used for more than one year. It includes capital expenditures of
government on agriculture and natural resources, construction, manufacturing,
mining, quarrying, transport and communication.
It is important to note at this juncture that for the administration of
government to operate without hindrances; these expenditures are necessary and
must be incurred.
The evolution of government expenditure in Nigeria has
revealed some basic trends over the years with regard to the patterns of
capital, recurrent and total government expenditure (Olusegun, 2014). Within
the period of the study, government capital expenditure maintained an upward movement
until 1979 when it declined to ₦4.22bn from ₦5.2bn in 1978. Government capital expenditure stood at
₦10.16bn in 1980 and declined to ₦8.34bn in 1988. It resumed an upward movement in 1989 from
₦15.03bn to ₦498.03bn in 1999. This
might be as a result of programmes and plans put in place by government to have
a democratic government. Again, it declined between the year 2000 and 2004
which probably could be attributed to the policy of government aimed at
achieving its set goals and objectives (World Bank, 2007). In 2005, capital expenditure stood at
₦519.42bn and increased to an all time high level of ₦1,152.8bn in 2009.
Thereafter, it recorded a downward movement to ₦634.80bn in 2016. In 2017,
government capital expenditure grew from ₦1,242.30bn in 2017 to ₦1,682.10bn in
2018. Government recurrent expenditure recorded an upward movement in almost all the years
under study except in 1973 when it recorded a little downward movement to
₦0.96bn from ₦1.01bn in 1972 and also in 1994 when it declined to N89.97bn from N136.73bn. From 1995 to date, there has been an upward movement in
government recurrent expenditure. This trend simply showed that over the years,
government recurrent expenditure has been greater than the capital expenditure
competent, which many perceived as unproductive. From the above trend, it is
likely that this pattern of expenditure in favour of recurrent over capital expenditure
will continue in the foreseeable future. Therefore, it becomes very important
to study impact public expenditure could have on growth of Nigerian economy.
Unfortunately, despite rise in government expenditure
in Nigeria over the years, there still exist unending public outcries
concerning the poor growth of the Nigerian economy. The rising government expenditure many argue,
has not translated in real terms to growth and development, as Nigeria ranks
among the poorest countries in the world (Nwamuo, 2020). Furthermore, many Nigerians wallow in abject
poverty as more than fifty percent of them live on less than US $1 per day
(Okoro, 2013).
Basic infrastructures such as roads, health facilities
and institutions, qualitative education, communication facilities and improved
technology are lacking. Power is highly
epileptic and unreliable, as a result no functional industries exist thereby
contributing to the high level of unemployment in the country with its
attendant negative consequences. The
level of technology is low and as a result, primitive technology and crude
implements are still in use in agricultural practices today in Nigeria. Low productivity therefore prevails as
agricultural output is usually not enough to feed the nation (Ujah, Amaechi and
Nwaeze, 2016). All these issues
negatively affect growth of the Nigerian economy. Again,
macroeconomic indicators such as balance of payments, exchange rate and
national savings revealed that Nigeria as a country has not fared well in the
last three decades.
An unending debate on whether or not increasing
government expenditure supports economic growth in several countries of the
world has continued till date. While
some scholars have argued in favour of it, others have argued against
this. Studies by Abu and Abdullahi
(2010), Deepti and Deepak (2020) and Adeole, Abraham and Sunday (2021),
revealed that government expenditure contributed to economic growth, while
others by Chude and Chude ( 2013), Akpan (2005) and Jeff-Anyeneh and Ibenta
(2019), suggested the contrary that public expenditure did not increase or
enhance growth in the economy. In the view of the Keynesians, government could
reverse economic downturns by borrowing funds from the private sector and then
return such funds to the private sector through various spending
programmes. With this, high levels of government
spending on consumption are likely to increase employment, profitability and
investment through the multiplier effect on aggregate demand. Thus, government expenditure – recurrent or
capital could contribute positively to economic growth. Verbeck (2000), and Laudau (1983), have argued
that increasing government expenditure might not have its intended salutary
effects on developing countries, given their high and often unstable levels of
public debts. Verbeck (2000), posited
that as government expenditure grew increasingly (incessantly), the law of
diminishing returns sets in and beyond some points, further increases in
government expenditure would contribute to decline and economic stagnation.
Economic growth which is the dependent variable in
this study brings about better welfare and standard of living of the people and
this result from improvement in infrastructure, housing, education, health and
improved agricultural productivity.
Thus, economic growth is a pivot ingredient for sustainable growth and
development in any country or economy.
Sustainable development is enhanced by economic growth. Scholars have viewed economic growth from
different angles. According to Jhingan
(2009), economic growth is viewed as an increase in output. He further explained that economic growth is related
to a quantitatively sustained increase in a country’s per capita income or
output accompanied by expansion in its labour force, consumption, capital and
volume of trade. Economic growth is also
viewed as a steady process by which the productive capacity of the economy is
increased over time to bring about rising levels of national output and income
(Todara and Smith, 2006). Olayemi (2017)
saw economic growth as an increase in the net national product of a county in a
given period of time. According to
Ochejele (2007), economic growth is characterized by high rate of structural
transformation, international flow of labour, goods and capital, high per
capita income, quality welfare facilities.
According to Ujah et
al (2016), economic development depicts the process by which there is a
long period of sustained growth in the national income of a country,
accompanied by an overall sustained improvement in the national income and
well-being of the people. Here, the
growth of real per capita income of a country is followed by an improvement in
the standard of living of people in the country. There is an expansion of health and
educational facilities and the people have access to these facilities and other
social amenities. On the other hand,
economic growth refers to the process by which there is an increased productive
capacity of an economy leading to a rise in the level of national income but
without any sustained improvement in the economic wellbeing or welfare of the
people. That is to say that an increase
in national income may be matched with a proportionate increase in population,
inflation, decayed infrastructural facilities as it is the case today with
Nigeria. Hence, cost of living is high
while standard of living is low.
Furthermore, it is important to note at this juncture
that the “less developed”, “under developed”,
“developing” and “third world” countries are terms used to describe the
same class of countries suffering from economic underdevelopment. This is the
stage at which the rate of growth of domestic savings is not enough to finance
investments needed for better development of an economy (Obi, Ekesiobi,
Dimnwobi and Mgbemem, 2016).
Underdeveloped economies have peculiar features as: poverty, low income
per head, high degree of illiteracy, low savings and investments. Others include low level of technology,
agriculture as main occupation, exportation of raw material and high degree of
unemployment.
According to the Keynesians, government has a role to
play in achieving economic growth among nations of the world. This is against the backdrop that
government’s primary duty is the provision of public goods which the private
sector might not have the capacity to provide such as roads, electricity,
security and health facilities (Nwaeze, Njoku and Nwaeze, 2014). However, Keynesian ideology majorly
acknowledges the effective contribution of government capital expenditure
towards achieving economic growth than government recurrent expenditure (Guhibet
and Tsenba, 2016). Thus, one tends to
wonder whether recurrent expenditure of government actually matters in economic
growth.
Like
earlier stated in this work, government expenditure has continued to rise
especially since the inception of the democratic era in Nigeria which began in
1999. This ever-increasing government
recurrent expenditure has attracted a lot of criticism and complaints from a
good number of Nigerians who argued that the government was wasteful and that
the funds spent on servicing the recurrent component of government expenditure
should have been channeled to capital projects (Nurudeen and Usman, 2010). The above argument has created an impression
that recurrent expenditure did not increase economic growth. There is the need for government to identify
priority areas of spending – health, education, agriculture, industry and
security. to enhance growth. Monitoring
of spending is also advised to ensure that desired intentions are met or
gotten. Thus, the assertion above as well as the need to empirically
investigate whether or not expenditure of government in Nigeria has
significantly contributed to economic growth, has motivated this study. All these issues have created major research
lacuna which this present study seeks to bridge.
1.2
STATEMENT
OF THE PROBLEM
The rise in public expenditure over the years has not
put an end to the public outcries of citizens concerning the poor growth of the
Nigerian economy. Thus, the problem here
is that rising government expenditure seems not to have really translated to
meaningful growth and development in the Nigerian economy. Okoro (2013), posited that many Nigerians
have continued to wallow in abject poverty as more than fifty percent of them
lived on less than US $1 per day.
According to Nwamuo (2020), Nigeria ranks among the poorest countries of
the world. Basic infrastructures and
social amenities such as good roads, quality education, water, health
facilities, communication are either totally lacking or in very poor state or
condition. Power is epileptic and highly
unreliable as our level of technology is low.
These have contributed, in no small measure, to the poor growth of the
Nigerian economy.
The enthronement of democracy in Nigeria in the year
1999 was accompanied by increased growth in recurrent expenditure such as administration
expenditures of the National Assembly – salaries, wardrobe allowances, sitting
allowances, buying of new cars for members on yearly basis, increase in
national debt servicing as well as capital expenditure of government. In all, over the years, increasing government
expenditures seemed not to have replicated corresponding level of growth in the
country. Some past studies carried out
in this area have revealed that government expenditure contributed to economic
growth and development (Abu and Abdullahi, 2010; Deepti and Deepak, 2020 and
Adeole, Abraham and Sunday 2021), while some other studies had suggested that
public expenditure did not increase growth in the economy (Akpan, 2005; Chude
and Chude, 2013 and Jeff-Anyeneh and Ibenta, 2019). Hence, there exists a mix bag in the findings
of their studies prompting the need to embark on the present study.
From available literature, it could also be observed
that a good number of researches have been carried out on impact of public
expenditure on economic growth in Nigeria, other developing countries (Agbonkhese
and Asekome, 2014; Enya, Stephen and Ikenna, 2015; Shakirat, 2018) and in
developed nations (Edward, 2009; Driton and Lirim, 2017; Acikgoz and Cinan,
2017). Most of these studies concentrated
on the relationship between government expenditure and economic growth in
Nigeria on aggregated and disaggregated basis, while some were on impact of
government spending on education, infrastructure and other public investments
as related to economic growth in Nigeria (Iheanacho, 2016; Nwaoha, Onwuka and
Ejem, 2017; Nura and Mustapha, 2015; Shakirat, 2018). Some of these past studies dealt with impact
of capital expenditure on economic growth in Nigeria (Gabriel and Johnson,
2013; Nazifi, 2014). There also exist dearth
of studies specifically on the area of impact of recurrent expenditure on
economic growth in Nigeria. This has
necessitated the need for this study as it has also created a gap which the
present study has bridged.
1.3 RESEARCH QUESTIONS
The following
research questions are formulated in order to guide this study:
1. To
what extent does government recurrent expenditure on administration impact on
economic growth of Nigeria?
2. How
does government recurrent expenditure on education impact on economic growth of
Nigeria?
3. To
what extent does government recurrent expenditure on health impact on economic
growth of Nigeria?
4. How
does government recurrent expenditure on economic services impact on economic
growth of Nigeria?
5. In
what ways does government recurrent expenditure on transfers affect economic
growth of Nigeria?
6. To
what extent does government capital expenditure on social and community services
impact on growth of the Nigerian economy?
7. How
does government capital expenditure on economic services impact on economic
growth of Nigeria?
1.4 OBJECTIVES OF THE STUDY
The general objective of this study
is to examine impact of government expenditure on economic growth of Nigeria
for the period 1980-2019,
The specific objectives of the study include
to:
1. examine
impact of government recurrent expenditure on administration on economic growth
of Nigeria.
2. investigate
impact of government recurrent expenditure on education on economic growth of
Nigeria.
3. investigate
impact of government recurrent expenditure on health on economic growth of
Nigeria.
4. determine
impact of government recurrent expenditure on economic services on growth of
Nigerian economy.
5. examine
impact of recurrent expenditure on transfers on economic growth of Nigeria.
6. investigate
the impact of government capital expenditure on social and community services
on growth of Nigerian economy.
7. examine
impact of government capital expenditure on economic services on growth of
Nigerian economy.
1.5 HYPOTHESES
The
following research hypotheses are formulated in this study in line with the
objectives of the study:
Ho1: There is no significant impact of
government recurrent expenditure on administration on economic growth of
Nigeria.
Ho2: Government recurrent expenditure on
education does not have a significant impact on economic growth of Nigeria.
Ho3: There is no significant impact of government recurrent
expenditure on health on economic growth of Nigeria.
Ho4: Government recurrent expenditure on economic services does not
have a significant impact on economic growth of Nigeria.
Ho5: Government recurrent expenditure on transfers does not have significant
impact on economic growth of Nigeria.
Ho6: There is no significant impact of government capital expenditure
on social and community services on growth of the Nigerian economy.
Ho7: Government capital expenditure on economic services
does not have significant impact on economic growth of Nigeria.
1.6 SCOPE OF THE STUDY
The
study covered the period 1980 to 2019.
This period has been chosen in order to enable the researcher determine the
impact of government recurrent and capital expenditure on economic growth of
Nigeria for the period under study. It
covered the pre-democratic and democratic era in Nigeria.
1.7 LIMITATIONS OF THE STUDY
The
study has been constrained mostly by finance. Adequate funding was required for
sourcing the needed materials for the work. This was not readily available;
however, this limitation was taken care of as the researcher had to borrow to
finance activities and processes involved in the research work.
1.8 SIGNIFICANCE OF THE STUDY
This study will be of immense
importance to the Nigerian economy in general and to the following parties in
particular:
1.
Government
The findings of
this work will be of immense benefit to the government of Nigeria and its
agencies in policy formulation and implementation as it concerns the national
budget. It will deepen the knowledge and
understanding of government on how the components of public expenditure –
capital and recurrent affect the growth of the Nigerian economy.
2.
Students
Students
conducting research on government spending and related topics will find this
work very useful. It can serve as a
basis for further research on this area and as well contribute to academic
literature in finance.
3.
Researchers
Researchers will benefit
from this work. It could serve as a
reference point on which works related to public expenditure, fiscal policy and
economic growth could be based on in the future.
4.
General Public
The general public will find this
work very useful as it touches an important aspect of government activity which
enhances the welfare of citizens. This
work will reveal to citizens issues on the classes of government expenditure
and their effects on the welfare of citizens in particular and the economy at
large.
5. Investors
and Business Owners
Investors and business owners will
find the outcome of this study useful.
Government policies on investment and expenditure have the ability to
promote small and medium scale enterprises as well as other businesses and
economic growth as it reveals the expenditure of government and its effect on
the economy.
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