Structure of public revenue and expenditure in nigeria pdf

This study has raised a research question of how government expenditure impacts economic growth in nigeria and which of capital expenditure or recurrent expenditure stimulates growth in nigeria. A synthesis report anambra, bayelsa, ekiti, kogi, niger, ondo, and plateau january 2011 poverty reduction and economic management, aftp3 afcw2 africa region public disclosure authorized public disclosure authorized public disclosure authorized. D student of economics in igbinedion university okada, edo state, nigeria. Public finance, public revenue and public expenditure. Composition of public expenditure and economic growth in. In nigeria, the government activities visavis public expenditure has grown rapidly both. The income of the government through all sources is called public income or public revenue. In a country like nigeria, accounting is a key factor in controlling the public expenditure of the country. Many developing countries fail to raise the tax revenue required to finance their public sectors. Gross domestic product gdp was used as a proxy for economic growth, and the gdp time series was. The impact of federal government expenditure on economic. We have in nigeria examples of tax imposed primarily on groups rather than individuals.

This study examines the efficiency and accountability of public sector revenue and expenditure in nigeria 19702014. Government expenditure and economic growth in nigeria. Public expenditure can be defined as, the expenditure incurred by public authorities like central, state and local governments to satisfy the collective social wants. Government spending and economic growth in nigeria 19802011 by okoro a. To examine the impact of public expenditure on economic growth in nigeria and to ascertain whether there is a relationship between gross domestic product gdp and government expenditure in nigeria. Modelling the determinants of government expenditure in nigeria. It includes harmonised and internationally comparable data that can be accessed online for free.

Since rise in public expenditure greatly depends on revenue collection. The details of taxation are guided by two principles. The result also proves a positive relationship between real gdp and recurrent and capital expenditure. Summary, recommendations, and conclusions 81 appendix. Revenue can be fund required by the government to finance its activities. The findings of the study reveal that oil revenue, gdp, population, trade. All these happenings in nigeria are largely due to inadequate immunization coverage, unawareness of the public, poor nutrition, unsafe water and poor sanitation exercises eneh, 2011. Government expenditurerevenue nexus reconsidered for nigeria.

Each and every year, a democratic government presents its budget to the parliament. It is incurred by central, state and local governments of a country. Public expenditure should actually be a desirable phenomenon, but in the case of nigeria, it has been more of a bitter pill, especially with the nonsignificant nature of most of the explanatory variables, public expenditure components. Data used for this study was gotten from central bank of nigeria cbn statistical bulletin. What has been the trend of expenditure on health in nigeria and finally what are the factors that determine the public health care expenditure in nigeria. An examination of the relationship between government. Expenses incurred by the public authoritiescentral, state and local self governmentsare called public expenditure. Role of accounting in the public expenditure of nigeria. Overview of government revenue and expenditure in 2018.

Domestic revenue mobilization in subsaharan africa ssa is generally weak in comparison to other parts of the world. Overview of government revenue and expenditure in 2018 revenue expenditure 285 bn 277 bn amounts in billions of euros other interior and kingdom relations finance housing and the central government sector economic a. The publication is produced jointly by the african tax administration forum. Government revenue and expenditure the term public finance is also referred to as government finance or public moneys it is defined by. A closer look at the healthcare system in nigeria healthcare financing health expenditure. This study is an attempt to assess the impact of public expenditure on the growth of the nigerian economy, and to ascertain whether there is a relationship between gross domestic product gdp and government expenditure in nigeria. Governments at all levels national, regional and local need to raise revenue from a variety of sources to finance publicsector expenditures. Senior lecturer, department of banking and finance, covenant university, ogun state, nigeria. It covers the period of 1981 2011 and the ordinary least square ols method of econometric technique was used. In these studies, researchers used economic development and economic growth interchangeably.

Domestic government debt structure, risk characteristics. Empirical findings support the existence of a level relationship between public spending indicators and economic growth in nigeria. Government spending and economic growth in nigeria1980. Muritala and taiwo 2011 used the ordinary least squares ols technique to see how public expenditure causes growth in the real gdp. The provision of public services and infrastructure is a key factor for economic development and growth. Government expenditure and its implication for economic. The effect of public expenditure on the economic growth. Empirical analysis from the study suggested that oil export revenue had a positively significant effect on growth both in the shortterm oil revenue total expenditure real gdp growth % capital expenditure % of gdp. Focusing on investigation of longterm relationship between tax revenue, expenditure, and economic growth, this paper employs granger causality test.

Structure, performance, and policies of agriculture in nigeria 9 3. Meaning, tax revenue, nontax revenue with classification of public revenue. The classical economists did not analyse in depth the effects of public expenditure, for public expenditure throughout the nineteenth. Accounting is the process of measuring the economic activities of an organization by recording financial details to be communicated to users to enable them make informed decisions. In the field of public finances, the issue of potential links between government revenue and. The recurrent expenditure are government expenses on administration such as wages, salaries. Revenue statistics in africa is an annual publication providing accurate, complete and reliable statistics on public revenue for tax policy development. An empirical retrospect of the impacts of government expenditures. The results from table 3 also show that growth rate of output is a determinant of the size of public sector in nigeria. For example, section 1 of the personal income tax pita contemplates the imposition of tax on communities and families, although such is rare in practice. Government expenditure and government revenue the causality.

The result would assist policy makers to recognize the sources of any fiscal imbalance that might exist and consequently, direct efforts to developing suitable strategies for a sound fiscal framework. Public expenditure has shown a significant relationship with the gross domestic product. Nigeria is the sixth largest producer of oil and gas in the world, but the average nigerian on the street is poor and there is poor infrastructure like power supply, roads, hospitals etc. In light of the foregoing, this study examines the relationship between federal government revenue and expenditure in nigeria, with a view to establishing the. Nigeria state level public expenditure management and. With the above perception, it becomes worrisome to ask several questions such as what has been the structure and pattern of government health expenditure in nigeria. Pdf tax structure, government spending and productivity growth. Nigeria government revenues 20102019 data 20202022. The fund is generated from different sources such as taxes, borrowing, fines, fees, etc. This page provides nigeria government revenues actual values, historical data, forecast, chart, statistics. Macroeconomic policy fiscal and monetary policies the nigerian governments total revenue in 2000 increased massively to represent about 46 per cent of gdp from about 31 per cent of gdp in 1999. Efficiency and effectiveness of agricultural public expenditure 58 5.

Public expenditure in nigeria is usually categorized into recurrent and capital expenditure. The study focuses on the impact of federal government expenditure on economic growth in nigeria from 1981 to 2014. In nigeria, several factors have been advanced to explain the changing domestic debt profile between the 1960s and now see odozi, 1996, rapu, 2003. Of the two main branches of public finance, namely, public revenue and public expenditure, we shall first study the public expenditure. Government expenditure, government revenue, structural break, causality. Nigeria the increase coming from the private sector, as public consumption declines to historical low levels. Leading public policy experts and practitioners have contributed to the series. Determinants of public health care expenditure in nigeria. Also, the ratio of revenue to gdp has exceeded expenditure to gdp ratio. The pattern of government expenditure in nigeria over the years has to a large extent been driven by crude oil endowment, which is reflected in the generated revenue akanbi, 2014. Federal republic of nigeria office of head of civil service of the federation.

Determinants of the size of public expenditure in nigeria. Also, tax may have objectives other than public revenue generation. The statistic shows the ratio of government expenditure to gross domestic product gdp in nigeria from 2014 to 2018, with projections up until 2024. Nigeria, fiscal policies, economic growth, debt to gdp ratio, ardl models. A lot of literature exists on tax revenue and economic growth of nigeria adereti et al. Pdf the paper examines the revenuespending hypothesis for nigeria using macro data from. However, allocations of public expenditure with lack of consideration for the urgent needs of the country may engender greater. The budget contains all the economic and social commitments of the government with detailed plans of revenue and expenditure. We explore the relationship between the composition of public expenditure and economic growth in nigeria.

Keywords stationarity, revenue size, public expenditure, phillipsperon, wagners law. Public finance is the term, which has traditionally been used or applied to the packages of those policy problems, which involve the use of tax. Such expenditures are made for the maintenance of the governments as well as for the benefit of the society as whole. Public expenditure and nigerian economic growth by isibor areghan akhanolu lecturer, department of banking and finance, covenant university, ogun state email. Analysis of agricultural public expenditures in nigeria. Some researchers estimated the effect of tax revenue on the economic development of nigeria using gross domestic product gdp. Public expenditure refers to government expenditure i. Figure 3 shows the composition of revenues by oil and non oil. Meaning, importance, classification and other details. Public expenditure was born out of revenue allocation which.

The structure of nigerian public expenditure can broadly be categorised into capital and recurrent expenditure. Hivsyphilis seroprevalence rate in 2005 in nigeria was 11. Structure of public expenditure in selected developing countries. Government expenditure is expected to be means of reducing the negative impacts of market failure on the economy. In its wider sense it includes all the incomes or receipts which a. Centrally collected revenues, primarily from export, import and excise duties, was distributed to the. According to dalton, however, the term public income has two senses wide and narrow.