An assessment of regional disparities in public expenditure and their economic impact in Nigeria: Evidence from Oyo State (2000–2020)
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Background of the Study :
Public expenditure is pivotal in shaping regional economic development, yet disparities in allocation can lead to uneven growth. In Nigeria, regional disparities in public spending have been a recurring issue, with some states receiving significantly higher investment than others. Oyo State, known for its rich cultural heritage and emerging industrial base, provides an ideal context to explore these imbalances. Between 2000 and 2020, discrepancies in budget allocations have affected the development of critical sectors such as education, healthcare, and infrastructure. Such disparities have implications for regional economic performance, social equity, and overall development outcomes (Okonkwo, 2023). Research indicates that equitable public expenditure can enhance productivity and reduce regional inequalities (Adeniyi, 2024). However, factors such as political favoritism, administrative inefficiencies, and poor fiscal management have perpetuated disparities in Oyo State. This study examines how these regional imbalances in public expenditure impact economic growth and social welfare. By analyzing budgetary data, economic performance metrics, and development indicators, the research seeks to provide actionable recommendations for optimizing fiscal policies to promote balanced regional development (Chukwu, 2025).
Statement of the Problem
Despite policies aimed at equitable distribution of public funds, Oyo State continues to experience significant disparities in public expenditure. These imbalances have led to underdeveloped infrastructure, inadequate public services, and slower economic growth compared to other regions. The mismatch between fiscal allocations and local needs undermines social equity and limits overall development. Understanding the root causes of these disparities and their economic impacts is essential for reforming public finance management. This study seeks to identify the factors contributing to regional disparities in public spending and assess their economic consequences, thus providing a basis for targeted fiscal reforms (Okonkwo, 2023; Adeniyi, 2024).
Objectives of the Study:
1. To analyze regional disparities in public expenditure in Oyo State.
2. To assess the economic impact of these disparities.
3. To propose policy recommendations for equitable fiscal allocation.
Research Questions:
1. How do regional disparities in public expenditure affect economic growth in Oyo State?
2. What factors contribute to these expenditure imbalances?
3. What strategies can promote equitable fiscal distribution?
Research Hypotheses:
1. H1: Regional disparities in public expenditure negatively impact economic growth.
2. H2: Administrative inefficiencies contribute to expenditure imbalances.
3. H3: Equitable fiscal reforms improve regional economic performance.
Significance of the Study (100 words):
This study offers essential insights into the economic implications of regional disparities in public expenditure in Oyo State. Its findings will inform fiscal policy adjustments and targeted reforms to promote balanced regional development. The research is valuable for policymakers, fiscal authorities, and regional planners seeking to enhance economic performance and social equity through more efficient public spending (Chukwu, 2025).
Scope and Limitations of the Study:
The study is limited to assessing regional disparities in public expenditure and their economic impact in Oyo State, focusing on fiscal data and development indicators.
Definitions of Terms:
1. Regional Disparities: Unequal distribution of resources and development across different geographic areas.
2. Public Expenditure: Government spending on public services and infrastructure.
3. Oyo State: A state in Nigeria serving as the focus for this study.
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