Abstract:

The study investigated the effect of public expenditure on the growth and development of Nigerian economy (1980-2012). Three research hypotheses were formulated to guide the study. The hypotheses thus investigated the influence of aggregate expenditure, capital expenditure and recurrent expenditure on economic growth and envelopment in Nigeria. Ex-post facto research design was adopted for this study. Data were obtained from annual publications of Central Bank of Nigeria. Data gathered were analyzed using Ordinary least square multiple regression statistical technique. Result of the findings revealed that aggregate expenditure had a positive impact on economic growth and development of the Nigerian economy, recurrent expenditure had a significant relationship on the growth and development of the Nigerian economy. The result also indicated that capital expenditure also had a significant effect on the growth and development of the Nigerian economy. The study recommended that the government should increase its spending on components of public expenditure which will in turn promote investment in the country. Key Words: Public Expenditure, Recurrent Expenditure, Capital Expenditure, Economic Growth and Development.

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