The Impact of Budgetary Allocation on Economic Development in Nigeria

Abstract

The study examines the impact of budgetary allocation on economic development in Nigeria. Using time series data from the Central bank of Nigeria from. The specific objectives of the study include investigation of the impact of budget on the educational development index, health development index, consumer price index and security development index. This study utilized ex-post facto research design. Ordinary Least Square (OLS) was employed to test the relationship between the dependent and independent variables. The study found out that education budget expenditure (EDUEXP) has a negative and significant relationship with education sector index in Nigeria (ESI), Health budget expenditure (HEXP) has a negative and significant relationship with the Health sector index (HSI) in Nigeria, Recurrent expenditure (REXP) has a positive and a significant relationship with Consumer price index (CPI) in Nigeria, and Defense budget expenditure (DEXP) has a negative and insignificant relationship with Defense Sector Index (DSI) in Nigeria. Based on the findings, the study recommends that the government should increase the budgetary allocation in the education sector so to increase and empower human capital index in the country.