Analysis of Inhibiting Intrigues of Budget Implementation and Economic Performance in Nigeria (1999-2018)
- March 25, 2020
- Posted by: RSIS
- Categories: Banking & Finance, IJRSI
International Journal of Research and Scientific Innovation (IJRSI) | Volume VII, Issue III, March 2020 | ISSN 2321–2705
Gbalam Peter Eze (Ph.D), Tonye Richard Apiri
Banking & Finance Department, Faculty of Management Sciences, Niger Delta University Wilberforce Island, Bayelsa State, Nigeria
Abstract: – Budget has gained prominent importance to government and nations as it entails quantitative projected financial plan for the various levels of government. Thus, the need of government in attaining set national objectives give rise to the formulation and formalization of budget. This study examined the inhibiting intrigues of budget implementation on economic performance in Nigeria. The study employs the use of secondary source of data obtained from National Bureau of Statistics (NBS) Fact File 2018, and subjected them to ADF stationarity and Johansson co-integration tests. The study parameters and outlined hypotheses were determined and tested using t-statistics outcome in the error correction mechanism (ECM). The study found that a unit reduction in government capital expenditure and government recurrent expenditure will decline Nigerian economic performance by 19% and 40% respectively. This equally indicated that there is a significant effect of budget implementation determinants on economic performance in Nigeria within the study span. The constrained recommendations of the study includes: Government of the Federal Republic of Nigeria to as matter of urgency to imbibe the culture regardless of region and religion differences to implement 95% of her capital and recurrent expenditure in the annual budget to achieve all round sectorial increase in economic performance and for government not to consider recurrent expenditure implementation as basis for immediate respite but rather on long term integration and development of the country.
Keywords: Budget implementation, capital and recurrent expenditure, economic performance.
I. INTRODUCTION
Budget has gained prominent importance to government and nations as it entails quantitative projected financial plan for the various levels of government. Budget was derived originally from a French word “bourgettees” in the 1300’s. Thus, the need of government in attaining set national objectives give rise to the formulation and formalization of budget. It is a short-term planning tool used by government to tackle issues that bothers on economic performance. On the other hand, budget is considered as a tool of governance in any modern state and may potentially aid planning to contribute towards enhancing an economy.
