PUBLIC SECTOR EXPENDITURE AND NATIONAL INCOME IN NIGERIA
Abstract
The interest of this research was to examine the influence of public sector expenditure on national income in Nigeria during the period 2012-2022. Three research purposes, research questions and null hypotheses were formed to guide this research. Public sector expenditure was used as the predictor variable. Developmental, productive and plan expenditures were employed as the dimensions of public sector expenditure,while national income was the criterion variable. Wagner theory was used as the theoretical foundation for this research.The ex-post facto design was adopted and census sampling method was used. This research covered 25 government MDAs.Data were sourced from Central Bank of Nigeria and Bureau of Statistics Bulletin. E-view 10 software was applied during data analysis. Results disclosed as followed: positive and significant relationship between developmental expenditure and national income, positive and insignificant relationship between productive expenditure and national income, positive and significant relationship between plan expenditure and national income amongst others. From the findings, the study concluded as follows: increase in developmental expenditure could lead to increase in national income, increase in productive expenditure could lead to a small increase in national income, increase in plan expenditure could lead to a small increase in national income amongst others. The study recommended that directors of MDAs should boost budget appropriation for developmental expenditure, management of MDAs should formulate due work schedule to monitor productive expenditure outlays, accountants in the public sector should embark on human resource development.
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