IMPACT OF RECURRENT GOVERNMENT EXPENDITURE ON ECONOMIC DEVELOPMENT IN NIGERIA
Keywords:
Economic Development, Government Recurrent Expenditure on General Administration, Government Recurrent Expenditure on National Assembly, Government Recurrent Expenditure on Health, Recurrent Government ExpenditureAbstract
The debate as per the effect of recurrent government expenditure on economic growth and economic development has remained contagious and there seems to be no end in sight. This study investigated the impact of recurrent government expenditure on economic development in Nigeria for the period 1999-2022. Recurrent government expenditure was proxied by government recurrent expenditures on national assembly, general administration and health while economic development was proxied by GDP per capita. Ordinary Least Squares (OLS) multiple regression technique was employed as analytical tool. Findings revealed that government recurrent expenditure on national assembly had negative and insignificant impact on economic development in Nigeria (p > 0.05). On the other hand, the study showed that government recurrent expenditure on general assembly and health had positive and significant impact on economic development in Nigeria (p < 0.05). Based on the findings of the study, it was recommended that the federal government should reduce its recurrent expenditures on national assembly in order to ensure increased economic development in Nigeria.
