Project Abstract

Abstract
This research investigates the impact of government expenditure on economic growth in Nigeria from 1980 to 2010. Government expenditure is a critical component of fiscal policy and plays a vital role in shaping the economic landscape of a country. By analyzing data over three decades, this study aims to provide insights into the relationship between government spending and economic growth in Nigeria. The research employs an econometric approach, utilizing time series data to examine the dynamics between government expenditure and economic growth. The study considers various categories of government spending, including capital expenditure, recurrent expenditure, and social welfare programs, to assess their individual impacts on economic growth. Additionally, the research incorporates control variables such as inflation rate, exchange rate fluctuations, and political stability to ensure the robustness of the findings. The findings of the study reveal a complex relationship between government expenditure and economic growth in Nigeria. While government spending on infrastructure projects and human capital development positively influences economic growth, excessive recurrent expenditure and inefficiencies in public spending can have adverse effects on the economy. The analysis highlights the importance of prudent fiscal management and efficient allocation of resources to maximize the benefits of government expenditure on growth. Moreover, the study underscores the significance of policy coherence and long-term planning in government spending to achieve sustainable economic growth. By identifying the key areas where government expenditure can have the most significant impact, policymakers can design targeted interventions to stimulate growth and development in Nigeria. Overall, this research contributes to the existing literature on the role of government expenditure in economic growth, particularly in the context of a developing country like Nigeria. The findings have implications for policymakers, economists, and stakeholders interested in understanding the mechanisms through which government spending influences the economy. By enhancing our understanding of these dynamics, this study offers valuable insights that can inform evidence-based policy decisions aimed at promoting economic prosperity and stability in Nigeria.

Project Overview

1.0            INTRODUCTION:

1.1.1  BACKGROUND OF THE STUDY.

Government expenditure has served as a common means of using fiscal policy in many countries to achieve economic growth, expansion, development and transformation of the economic base. According to Musgrave (1989), He described public expenditure as tool used to achieve three distinct objectives which include allocation, distributive and stabilization purpose. Hence the public expenditure is a comprehensive set of expenditure policy measures designed to achieve certain set up macro-economic goals including maintaining equilibrium between the aggregate demand and aggregate supply (IMF 1993).

There are many irregularities in the country leading to public outcry and there was increasing fraud in government activities resulting from an inappropriate public finance planning and implementation mostly in Nigeria. Banks and businesses were collapsing which lead to crises in the external and internal activity of the economy. Some of the hills that caused this are corruption, indiscipline, lack of accountability which is the hallmark of the Nigerian society resulting to decrease in growth and development