ABSTRACT

This study focuses on the effect of government expenditure on economic growth. Despite the rise in government expenditure in Nigeria over these years, there are still public outcries over decaying infrastructural facilities. Also, merely few empirical studies have taken holistic examination of the effect of government expenditure on economic growth regardless of its importance for policy decisions. The study made used of an ex-post facto research design. The data collected were then tabulated and analyzed using the simple regression analysis. The result revealed that capital expenditure has a significant effect on gross domestic product. The result also revealed that recurrent expenditure has a significant effect on gross domestic product. Conclusively, the study has established that public expenditure in the Nigeria economy increases the level of output. It shows the expenditure of the public authority is aimed at protecting the citizen and promoting their economic and social welfare. Public expenditure raises national income and economic stabilization. It is recommended that government should implement other measures that will help in contributing to the growth of Nigeria economy. Public expenditure is an important fiscal instrument; therefore government can use it to control the economy. Government should devise ways of maintaining an effective control to avoid wastage and misappropriation of funds for expenditure purposes.