ABSTRACT

This study investigates the effect of capital budget implementation on the development of Nigerian economy.The slope ofthe study covers the post democratic regime from 2004 to 2017. Ex-post facto research design was adopted. Secondary data were sourced from Central Bank of Nigeria (CBN) Statistical bulletin 2017, Various Budget Implementation Reports of Budget office of the Federation, Journals, and National News Papers. The data collected were analyzed using descriptive, multiple regression, and correlation analysis and employing the service of EView 8 and SPSS version 20. The study reveals that there is a significant relationship between capital expenditure and gross domestic product in Nigeria. Secondly, capital implementation rate significantly relates to gross domestic product in Nigeria. Thirdly, the time lag between president’s presentation and signing of budget has significant relationship with gross domestic product. Finally, there is negative but not statistically significant relationship between time lag between president’s presentation and signing of budgets and capital budget implementation rate.The study recommends that since there is a significant and positive relationship between capital expenditure and economic development. Government should increase capital expenditure, to boost the economic development ofthe country. In addition, based on the finding that capital budget implementation rate has significant relationship with the gross domestic product, we recommend that budget implementation be adequately monitored to achieve higher rate of implementation.