ABSTRACT

 Government expenditure which is a key component ofgovernment fiscal policy has been touted as a key determinant ofaggregate expenditure. Since the time ofKeynes, many Economist have arguedfor and against the effect of changes in this key component offiscal policy on economic growth. The study is therefore an attempt to carry emt-an investigat^n^mfffthe effect of disaggregated expenditure on economic growth in Nigeria Following an extensive review of theoretical and empirical literature, the study estimated a multiple regression model with real domestic product as the explanatory variable while government expenditure on economic services, government expenditure on social and community services, government expenditure on administration and government on transfers as independent variables. Annual time series data ranging from 198!- 20] 8 of the selected variables were employed in the analysis. The study established that, government expenditure has a positive impact on economic growth both in the short run and long run. Finally, the study established that there exist a long run relationship between government expenditure and economic growth in Nigeria. The study recommends that there is Urgent need to instill fiscal discipline in government expenditure by initiating far reaching effective internal control measures and more proactive economic management coordination and implementation as well as discouraging all non-productive activities and expenditures in all tiers ofgovernmentforthwith