EFFECT OF BUDGET PADDING ON THE ECONOMIC DEVELOPMENT OF NIGERIA

Abstract

This research was focused on Effect of Budget Padding on the Nigeria’s Economy. The specific objectives were to; evaluate the socio-economic implications of budget padding, examine the powers of the legislature with respect to budget processes, and analyze the ethical and moral implications of budget padding. The study involved a descriptive research design and content analysis whereby the quantitative method was adopted using secondary sources of data. Findings revealed that; the socio-economic implication of budget padding was perturbing as it affects known economic indices negatively. Also, the legislature has powers to scrutinize and approve national budgets but lack powers to insert new projects and programmes without recourse to the Executive; it is also morally and ethically wrong for the legislators to introduce new items into the budget without the consent of the budget initiators. Finally, the consequences for failure of the budget had negative impact on the implementation of strategic government projects and programmes. Following the findings, it was recommended that; to attain national growth/development, there was need for strict adherence to the fundamental principles of good budgetary governance, such as the management of budgets within clear, credible, and predictable limits for fiscal policy. Again, policy makers should ensure that budget documents and data were open, transparent, and accessible, provide for an inclusive, participative, and realistic debate on budgetary choices present, and a comprehensive report on new items inserted in the budget estimate. Finally, in line with the anti-corruption stance of President Muhammadu Buhari’s administration, all abuse of powers and privileges by public office holders should attract appropriate punitive measures.