The Growth Stimulating Role of Capital Expenditure Components of the Federal Budget of Nigeria; Real or Imagined?
The paper examined the impact of the capital expenditure components on output growth in Nigeria. The objective of the study was to determine the impact of Administration, Economic Services, Social Community Services, and Transfer payments on Real Gross Domestic Product in Nigeria. To achieve this, the model was built following the multiple regression example. Furthermore, the ordinary least square technique was employed for the estimation. The results reported that every increase in administrative expenditure and transfer payments lead to increase in national output in Nigeria, while for economic services and social community services; the impact is nonlinear and insignificant. Consequently, the paper suggests efficient resource allocation and implementation of budgetary provisions coupled with real time monitoring and checks on social works by engaging the citizenry through various social media platforms.
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