BUDGET IMPLEMENTATION AND ECONOMIC GROWTH IN NIGERIA.

Abstract

This study assessed the effect of budget implementation on economic growth in Nigeria. Gross Domestic Product (GDP) was used as a proxy for economic growth, while public capital expenditure (CEX), Public recurrent expenditure (REX), Broad money supply (BM) and Interest rate (INT) were used as proxies for budget implementation. Secondary data were sourced from CBN statistical bulletin for the relevant period (1997 – 2021) and the ordinary least square statistical tool was adopted in the regression analysis. The study analyzed both the short and long run effect of budget implementation on economic growth. The result of the study shows that in the short run some of the variables have no significant effect on economic growth, and in the long run the result also replicated same effect on economic growth. The study therefore recommends that the government should invest more on capital projects in other to spin the wheel of economic growth faster. The government should not consider increasing recurrent expenditure as a way of achieving economic growth but capital expenditure that will be effectively and efficiently implemented.