IMPACT OF GOVERNMENT EXPENDITURE ON ECONOMIC GROWTH IN NIGERIA (2000-2015)
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Abstract
The study examined the impact of government expenditure on economic growth in Nigeria, using the time frame 2000-2015 (5years).
More specifically, the study sought to assess government expenditure and economic growth. The study consist of staff in various departments of Oshodi-Isolo local government council. A stratified random sampling technique is used for the study and population of one hundred (100) staff of the various departments was studied, furthermore the research design adopted primary and secondary data, which enable the design in making decision on the data sourced research instrument sampling, plan and content method, and it also enable the researcher obtain response and draw conclusion on the research problem.
The study is a survey research, having the major substance of analysis comprising of public opinions, which were elicited by the means of questionnaire. Furthermore, the data were presented with the aid of descriptive statistics, which is very easy to understand make deductions, and the chi-squared technique was employed to test the hypotheses in order to make valid conclusions.
Result from the study indicated that government capital expenditure has contributed significantly to economic growth in Nigeria between 2000 and 2015; and Government recurrent expenditure has contributed significantly to economic growth in Nigeria between 2000 and 2015.
Also the relationship between government spending and economic growth is important for all developing economies like Nigeria, most of which have experienced increasing level of government spending and have achieved low level of economic development overtime.
Base on this, the study advised that Government capital expenditure needs to be based on the capital projects the economy really need to develop and not basing the expenditure on the wrong capital project., secondly, government should monitor the level of productivity in relation to demand for them., all existing infrastructural facilities that are in dilapidated state should be rebuilt and mount up to international standard., thirdly, the government should invest more on research so the economy can meet up with the new era technologies., and lastly, The government should borrow less, while save and investment more.
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