Effect Of Capital Budget Implementation Rate On Economic Growth Of Nigeria 1980-2017):- Ewenike Doris U

ABSTRACT

the study examined the impact ofbudget implementation on economic growth in Nigeria ranging from 1981-207 7 accordingly, the study used the method of ordinary least square econometric technique and unit root testingfor the purpose ofexamining budget implementation on economic growth in Nigeria.! capital budget implementation, capital expenditure and time lagforfederal government to sgn budget) on economic growth in Nigeria. The results show that budget implementation has a negative and insignificant long run relationship between economic growths (rgdpc). The negative significant long run effect ofcapital expenditure on economic growth in Nigeria confirms inverse relationship between dependent and independent variable. The results suggest that capital expenditure exerts negative impact on growth due to increasing government expenditure on the sector. However, with government expenditure on areas such military rather than on economic activities will impact negatively on the economic growth ofNigeria. The government should direct its expenditure towards the productive sectors like education as it would reduce the cost ofdoing business as well as raise the standard living ofpoor ones in the country. The Government should increase its expenditure on rural roads and electricity as this will accelerate the productive sectors as well as raise the standard of living ofpoor citizens in Nigeria. Such strategy could lead to optimum resource utilization and indeed improve the standard ofliving in the country.