Impact Of Public Expenditure Towards Economic Growth / Development(A Comparative Analysis Between Nigeria And Britain)

Public Expenditure
Public Expenditure
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Public Expenditure


The research work is on the impact of public expenditure towards Economic growth of development (A Comparative Analysis of Nigeria and Britain).The project is focused on how to appraise and to measure the public expenditure towards Economic growth and development. Hypothesis will be drawn concerning the topic for proof and verification statistical table will be used t arrive at a decision rule in subsequent chapter.An indepth literature review is to be carried out in related materials, such as textbooks, library, magazines and articles writing by various management scholars.The population of the study is going to be complex.  The population will comprises of the Hausas, the western Zone covering the Yorubas and the Eastern zone comprising the Igbos.The research work will be limited to some unavoidable constraint, some of which include, Time. Finance and inadequate facilities in the Library.Finally, the research work will enhance to explained the model fits of the public expenditure with respect to comparative and analysis of Nigeria and British public expenditure to economic growth.



1.0              Background of the study

1.1       Statement of the Problem

1.2              The purpose of the study

1.3              Objectives of the study

1.4              The Hypothesis if the study

1.5              The research Question of the study

1.6              The Limitations of the study

1.7              Significance of the study

1.8              Scope of the study

1.9              Definition of terms.


2.0              Introduction to Literature Review

2.1       Definition of public expenditure

2.2              Classification of public Expenditure

2.3              Importance for public expenditure

2.4              Changes in public expenditure

2.5              Principles of public expenditure

2.6              Determinants of public expenditure

2.7              Economic development


3.0              Introduction

3.1       Definition of Area and population of study

3.2              Procedures for data Collection

3.3              Procedures for data analysis

3.4              Public Expenditure Functions

3.5              The need for Public expenditure


4.0              Presentation of data collected

4.1       Presentation of result (Britain)

4.2   Interpretation of Results

4.2.1 Standard Error test

4.2.2              The T – Test

4.3                    Analysis of Variance

4.4                    Discussion of result (Britain)

4.5                    Presentation of Result (Nigerian)

4.5.1 Interpretation of result

4.5.2              Standard Error Test

4.6                    The T-Test

4.6.1              Analysis of variance

4.7                    Discussion of Result (Nigeria)


1.0              Summary /finding, Conclusion and Policy Recommendation

5.1       Summary of Finding

5.2              Conclusion

5.3              Recommendations





1.0              BACKGROUND OF THE STUDY

Amongst scholars, economic growth have been referred to as the study process by which the productive capacity of the economy is increased overtime to being about increases in the output of goods about services sand rising levels of national income.

In short, it mean growth in the output of goods and services (i.e growth in GNP) However, the function of public expenditure and its impact to economic development could be traced by throwing more lines on the meaning of public expenditure.

According to an economics dictionary by J. L HANSON:  Public expenditure have bee stated and the amount of money spent by a state or a supreme recognized region on its defense.  Education and other social services, interest on National debts, capital investments etc.  Therefore, public expenditures on economic development is traditionally applied tot he package of policy problems that involves the use of fax and expenditure measures.  This economic development measures have been seen as a conscious and deliberate effort by the government to influence, direct and control the path of progress f the country.

It involves the government’s directive and actives interference with the market mechanisms either to supplement or to supplant it.

It is generally done by directly allocating or influencing the allocations of the society’s resources (both human and maternal) according to some predetermined objectives and thus, it involves the government in conceiving, initiating, regulating and controlling economic activities in the system,

However, the impact of public expenditure on economic development have been to weighting the economic standard of a country ads to determing its per-capital income distribution, the inflationary rate, the cross National product and the monetary valuation to mention but a few between Nigeria and Britain


It have been identified in the  recent years that the inability of the government to allocate public expenditures to areas that are necessary have led to the fall of the standard of economic growth research have summoned the quest for acquiring the feasibly of public expenditures to faster the economic development and standard of the economy.

What is economic development ?

According to Edet B.  Akpakpan; economist, economic growth is about increases in the out put of goods and services i.e increase in the real GDP.  Thus if the GDP say rises from N200b in year 1 to N210b in year 2, we say that the economic has grown over the period and growth rate increase but if in the reverse, we say that there is s decline or decrease in economic growth.  From facts certain reasons have been attributed to the lack of economic growth in Nigeria though its public expenditures the ignorance of the government in making way of for capital investment in and outside the country have been one of the major roles in the frustration of economic development through taxes and rates paid and the have impacted negatively to the economic standard and growth.

These negative trends that are attached to economic growth have played a major role in the reduction of unemployment level.  In the country, also the reduction in the degree of personal and regional inequalities among indigenes in the country can be sensed o visualized through this economic mayhem, there have bee total reduction in the level of a absolve poverty o citizens, also the reduction of productive capacity etc have been parts of the negative trend cased by the inability of government using public expenditures to impact economic development.  Due to this low rate of production capacity there mighty be difficulty for citizens demands to be reached and their tend to be inflationary situations in this conditions. Therefore, there must be measures in check mating these factors that is disastrous to economic development.

Furthermore, in this research work, we shall tend further to compare and analysis the impact of public expenditures to the development of Nigeria and Britain and hence finding a lasting solution to any if necessary.

1.2              THE PURPOSE FO THE STUDY

The study is motivated by need for Government to intervene towards  the development of the economy.

The purpose of this study is to ascertain the impact or role of public expenditure in developing economics.

The study is aimed at determing the extent to which public expenditures can be used to achieved meaning development in the developing economics and as well determine the variation between developing and developed by basis of Comparison between Nigeria and Britain.

Finally, it will aim at offering useful and relevant suggestions to the government of our nation on ways through which we can improve the economy through adequate utilization of public tends and effective public polices.

1.3              OBJECTIVES OF THE STUDY

The major objectives of the study have been generally classed as to determining the economic situations in Nigeria and Britain and thus:

i.                    To determine the income distribution of fellow citizens.

ii.                  To determine the public expenditure strategies to boost the standard of living of the people.

iii.                To finding measures to controlling and avoiding inflationary situations in Nigerian.

iv.                The research objective have been to valuate or maintain the monetary sector and stabilizing its value.

v.                  It has been the objectives of the research to ascertain the level of  the country’s capital investments.

vi.                Finally, it is focused at exposing fluctuations against economic development and growth.


The research hypothesis that would be used as guide for testing relationship between variables are.

i.                    There is no  significant relationship between the level of economic development in Britain and that of Nigeria.

ii.                  There is no significant relationship between the availability of public expenditure in Britain and that of Nigeria.

iii.                There is no significance relationship between the standard of living in Britain and the standard in Nigeria

iv.                There is no significant relationship between the effective utilization of natural resources in Nigeria and that of Britain


Sequel to the statement of problms above, the following research questions are put forth.

i.                    Does the provision of public infrastructure leads t economic development?

ii.                  Does government public policies affect the level of Public expenditures in the economy  ?

iii.                Does the source of government revenue effect public expenditure in the economy ?

iv.                Does public expenditures on infrastructure leads to the improvement in the general standard of living of the citizens ?


The main beneficiaries of this research work will be the general public, entrepreneurs, management science students and the government.

This study will enable the public appreciate the impact of public expenditure on economic development.

In particular, it will be useful to entrepreneurs and the public who may find the structure to economic development, a useful instrument fore realizing their dreams of owing or finding ways of economic restructure and growth. Though this work the Nigeria government may understand more clearly, the problems entangled to economic growth and development which are in position to solve.  Subsequently this will enable then broaden their services efficiently through public expends derived to developing the economy.

This undoubtedly will help to improve the economy and ultimately the standard of living of the citizens.  The students of management sciences will use this work as a stand for future aid.

Further research because it will  bring out areas for improvements. It will also help then to study and know the roles of pubic expenditures to economic development.

The government will also benefit immensely in that the research will new- know their roles and sue than to improve the country’s economic standard, when the  economy is balanced, government will receive more taxes, custom tariff, rates sanities social amenities and sound education to its citizens.

These economic situations when improved will expand and create work for ore employment opportunities there by helping the government to solve the problems of unemployment in the country which has remained as her major bane.

1.7              SCOPE OF THE STUDY

The scope and delimitation’s of the study is to view that impact of public expenditures on developing economy.    Hence, we shall tend to know more of these impact especially as it related to Nigerian and Britain as case study.

This can be achieved by viewing and analyzing the basic impact public expenditure have played in developing an economy.

1.8              DEFINITION OF TERMS

Many abstracts are generally on impact of public expenditure towards economic growth/Development in Nigeria

It is ersentian to gain proper under standing of the terminologies especially as used in the present study:

a.           Public expenditure can be seen as the measure through which allocative efficiency or Pareto optimality can be attained.  And how impact of public expenditure has brought about economy growth/Development in Nigerian.

b.          Thus as brought about a lot of changes in out economy.  One of the changes is how he government ahs brought about activities of lerving taxes, undertaking expentitues on commodities.

c.           Making direct money transfers to individuals and form as well as the establishment of regulatory standards for the operation of the economy.

d.          The influence of public expenditure on demand and supply and how public expenditure carries the  implications or stability growth and development.

e.           This is a comparative study of Nigeria and Britain, And it also determine the extent to which the regressor affect regress.

f.           The study is motivated by need for government to intervene toward the development of the economy.

g.          According to AGIOBENEBO T. J which stated that public expenditure on economic development is traditionally applied to the package of policy problems that involves the use of fax and expenditure measure.

h.          This economic development measures have been seen as a conscious and deliberate effort by the government to influence, direct and control the path of progress of the country.

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