ABSTRACT

Budgetary allocations, both at management and operational level look at the future and lays down what has to be achieved. Contribution checks whether or not the plans are realized, and puts into effect corrective measures where deviation or shortfall is occurring. This study examines how budgetary allocations can impact on the performance of selected sectors (Agriculture, Education, Health and Transport) in Nigeria as considered in this study, being a sample of the entire sectors in the Nigerian economy. We reviewed the contributions of the Nigerian selected sectors in previous and recent times. We found out that the contributions of these sectors leave much to be desired owing to reasons such as over dependence on crude oil, neglect of the sector due to frivolities, collapsing infrastructures, unfavourable sectoral reforms among other factors, which altogether have resulted in low capacity utilization of the selected sectors. Furthermore, the study evaluates the contributions of the selected sectors of the Nigerian economy to its development, so as to serve as reference point to the Nigerian government and the relevant stakeholders charged with the responsibilities of achieving the millennium goals of the Nigerian Economic Development, tagged: (vision 2020). The issues succinctly highlighted in this study relates to the general background to the study, objective of the study, relevant literature review and trends in the budgetary allocations to the selected sectors. This study made use of the simple correlation analytic technique specifically the Pearson Product Movement Correlation coefficient tool for analyzing the contribution of the selected sectors to the economic development of Nigeria using Gross Domestic Product (GDP) as proxy and the test statistics to measure the extent of relationship between the variables considered. In most of the cases considered, established the presence of a negative relationship between allocated funds as budget variable and the contributions to GDP of the selected sectors. Following my findings, I advised that government and sectoral administrators at all level should pay more attention to their budgetary allocation systems, while those without any should endeavour to set-up a result-oriented system as it will go a long way in repositioning the Nigerian sectors from their creeping performance level to an improved and high capacity utilization point. Following this analytical tool, this study concluded that insignificant impact of budgetary allocations were flawed by inadequate utilization of funds earmarked to sectors and insufficient allocations by government to enhance performance in order to meet up with the international standard. Keywords: Budgetary, Allocations, Sector Contribution, Economic Development, Nigeria