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ECONOMICS

IMPACT OF GOVERNMENT EXPENDITURE ON ECONOMIC GROWTH IN NIGERIA (1980-2010)

IMPACT OF GOVERNMENT EXPENDITURE ON ECONOMIC GROWTH IN NIGERIA (1980-2010)

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IMPACT OF GOVERNMENT EXPENDITURE ON ECONOMIC GROWTH IN NIGERIA (1980-2010)

Chapter one

1.0 Introduction 1.1.1 Background of the Study.

In many countries, government spending has been a popular method of implementing fiscal policy to accomplish economic growth, expansion, development, and economic base change.

According to Musgrave (1989), public expenditure is a tool used to achieve three unique objectives: allocation, distribution, and stabilisation.

As a result, public expenditure is a comprehensive collection of policy tools aimed to achieve specific macroeconomic goals, such as preserving aggregate demand and aggregate supply equilibrium (IMF 1993).

There are several irregularities in the country, which have sparked public outrage, and there has been an increase in fraud in government activities as a result of inadequate public finance planning and implementation, particularly in Nigeria.

Banks and businesses collapsed, causing foreign and internal economic crises. Corruption, indiscipline, and a lack of responsibility, all of which are hallmarks of Nigerian society, have contributed to a decline in growth and development.

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