An examination of determinants of state-level public expenditure efficiency in Nigeria: Evidence from budgetary practices in Abuja (2000–2020).
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Background of the study
State-level public expenditure efficiency is vital for ensuring that government spending translates into effective public services and sustainable economic development. In Abuja, budgetary practices from 2000 to 2020 have undergone reforms aimed at improving fiscal discipline, transparency, and accountability. Factors such as administrative capacity, monitoring systems, and policy consistency play critical roles in determining expenditure efficiency. Empirical studies have demonstrated that efficient public expenditure leads to better service delivery, reduced wastage, and improved economic performance (Ibrahim, 2023). However, persistent challenges such as bureaucratic delays, misallocation of funds, and lack of real-time monitoring often undermine these efforts (Chinwe, 2024; Oluwaseun, 2023). This study examines the determinants that influence state-level public expenditure efficiency in Abuja, analyzing current budgetary practices, identifying inefficiencies, and proposing reforms to optimize resource allocation and enhance accountability.
Statement of the problem
Despite fiscal reforms aimed at improving expenditure efficiency, Abuja continues to experience significant inefficiencies in public spending. Issues such as bureaucratic delays, misallocation of resources, and inadequate monitoring systems hinder the effective implementation of budgets (Ibrahim, 2023; Chinwe, 2024). These challenges result in suboptimal service delivery and reduced public trust. The study seeks to identify the determinants that impede expenditure efficiency and to recommend measures to improve budgetary practices.
Objectives of the study:
- To assess the determinants of public expenditure efficiency.
- To evaluate budgetary practices in Abuja.
- To recommend policy reforms for enhanced expenditure efficiency.
Research questions:
- What factors influence public expenditure efficiency in Abuja?
- How do current budgetary practices affect efficiency?
- What policy measures can improve expenditure management?
Research Hypotheses:
- Effective monitoring systems enhance expenditure efficiency.
- Bureaucratic delays reduce budgetary performance.
- Policy reforms improve public spending outcomes.
Significance of the study
This study is significant as it examines the determinants of public expenditure efficiency in Abuja, offering insights for policymakers to optimize budgetary practices. Improved expenditure efficiency is essential for better public service delivery and economic development, and the findings will help guide reforms that enhance fiscal transparency and accountability (Ibrahim, 2025).
Scope and limitations of the study:
This study is limited to assessing state-level public expenditure efficiency in Abuja, focusing on budgetary practices and administrative processes.
Definitions of terms:
- Public Expenditure Efficiency: The effectiveness with which government spending yields desired outcomes.
- Budgetary Practices: Methods and procedures used in planning and implementing government budgets.
- Fiscal Discipline: The practice of controlling public spending and maintaining balanced budgets.
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