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Assessing the Impact of Budget Implementation on Economic Growth in Nigeria

Author

Listed:
  • Audu Abayomi YUSAU

    (Department of Business Administration and Management Studies, Federal Polytechnic, Kaura-Namoda, Zamfara State, Nigeria.)

  • Obinna Francis OKWECHIME

    (Department of Business Administration, Nassarawa State University, Keffi, Nigeria.)

Abstract

This study examined the impact of budget implementation on economic growth in Nigeria between 1990 and 2023 utilising the ex-post facto research design. The study investigated the relationship between government capital expenditure, recurrent expenditure and economic growth measured by GDP. Data for the study were sourced from the Central Bank of Nigeria (CBN) statistical bulletin and analysed using the Vector Error Correction Model (VECM). Findings from the estimations show a significant long-run relationship between budget implementation and economic growth, with capital expenditure positively influencing GDP while recurrent expenditure has a mixed effect. The study highlights challenges such as inefficiencies in resource allocation and delays in project execution, which hinder optimal budget performance. Policy recommendations include improving fiscal discipline, enhancing monitoring mechanisms, and prioritizing capital investments to foster sustainable economic growth. This research contributes to understanding the critical dynamics of budget implementation in Nigeria and provides insights for policymakers aiming to achieve economic stability and development.

Suggested Citation

  • Audu Abayomi YUSAU & Obinna Francis OKWECHIME, 2025. "Assessing the Impact of Budget Implementation on Economic Growth in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(1), pages 1969-1977, January.
    • Handle: RePEc:bcp:journl:v:9:y:2025:i:1:p:1969-1977
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    References listed on IDEAS

    as
    1. Stephen Taiwo Onifade & Savaş Çevik & Savaş Erdoğan & Simplice Asongu & Festus Victor Bekun, 2020. "An empirical retrospect of the impacts of government expenditures on economic growth: new evidence from the Nigerian economy," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-13, December.
    2. Tatiana Kanyeva, 2020. "Budget expenditure as a tool of social development," University Economic Bulletin, Hryhorii Skovoroda University in Pereiaslav, Faculty of Financial, Economic and Vocational Education, issue 44, pages 172-179, February.
    3. Sibel Bali Eryigit & Kadir Yasin Eryigit & Ufuk Selen, 2012. "The Long-Run Linkages Between Education, Health And Defence Expenditures And Economic Growth: Evidence From Turkey," Defence and Peace Economics, Taylor & Francis Journals, vol. 23(6), pages 559-574, December.
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