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THE IMPACT OF GOVERNMENT EXPENDITURE ON ECONOMIC GROWTH IN NIGERIA (1980-2010)

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CHAPTER ONE
1.0            INTRODUCTION:
1.1.1  BACKGROUND OF THE STUDY.
Government expenditure has served as a common means of using fiscal policy in many countries to achieve economic growth, expansion, development and transformation of the economic base. According to Musgrave (1989), He described public expenditure as tool used to achieve three distinct objectives which include allocation, distributive and stabilization purpose. Hence the public expenditure is a comprehensive set of expenditure policy measures designed to achieve certain set up macro-economic goals including maintaining equilibrium between the aggregate demand and aggregate supply (IMF 1993).

There are many irregularities in the country leading to public outcry and there was increasing fraud in government activities resulting from an inappropriate public finance planning and implementation mostly in Nigeria. Banks and businesses were collapsing which lead to crises in the external and internal activity of the economy. Some of the hills that caused this are corruption, indiscipline, lack of accountability which is the hallmark of the Nigerian society resulting to decrease in growth and development.

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