PATTERNS OF GOVERNMENT EXPENDITURE IN NIGERIA BEFORE AND AFTER THE 2006 DEBT RELIEF
This study examines the patterns of government expenditure before and after the 2006 debt relief. Prior to the estimation procedures, the stochastic properties of the time series data were used. To examine the pre and post pattern of government expenditure within two subsample periods- 1980 to 2005 and 2006 to 2014, the study uses a structural test approach known as Chow test. The time series analysis observed the presence of a long-run co-integration among the variables while the fully modified OLS regression estimates revealed that gross domestic product, public debt service rate, inflation rate and control of corruption are statistically significant in explaining changes in total expenditure of the government. The results of Chow test however revealed that the patterns of government expenditure before and after the 2006 debt relief are not the same. The study therefore recommends that there should be high degree of transparency and accountability in government spending consumption, in order to prevent unproductive should monitor the contract awarding process of capital and recurrent projects closely and to prevent against over estimation of execution cost. Government should also evaluate its spending pattern and the way budgetary plans are carried out at ministerial level, thereby reducing fiscal waste.
|Keywords: Expenditure, Patterns, Debt, Relief, Corruption|
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