Impact of Budget Implementation on the Growth of the Nigerian Economy

Abstract

This study examines the impact of Federal budget on the growth of Nigerian economy from 1999 to 2016. Secondary source of data sourced from institutions such as World Bank, Central bank of Nigeria, Office of the Accountant-General of the Federation and Federal Ministry of Finance was used in conducting the research. Gross Domestic Product (GDP) was used as the dependent variable while Public Recurrent Expenditure (REXP) and Public Capital Expenditure (CAPX) were used as the independent variables. The study adopted multivariate analysis (multiple regression) in analyzing the impact of budget implementation on the growth of Nigerian Economy. The results revealed that budget implementation has a positive impact on Nigeria economic growth. Correlation coefficient was used to measure the relationship between Gross Domestic Product and Public Revenue Expenditure on one hand and Gross Domestic Product and Public Capital Expenditure on the other hand which revealed positive relationship on each scenario. This study amongst others recommended that a monthly update on the parameters upon which the Federal budget was appropriated should be prepared by the budget office and publish on its websites for members of the public to monitor the progress being recorded on the implementation of the budget and to hold the government to account when the expenditures reported cannot match the revenue generated, the practice of early preparation and submission of budget estimates by the executive arm of government should be encouraged.