Public Financial Management And Economic Development In Nigeria
Dr Olaoye Festus Oladipupo
Department of Accounting, Ekiti State University, Ado-Ekiti, Nigeria
ORIMOGUNJE Folakemi S
Department of Accounting, Ekiti State University, Ado-Ekiti, Nigeria
Keywords: Public Financial Management (PFM), Total Government Reven, Total Government Expenditure, Total Public Debt, Economic Development, Human Development Index
Abstract
This study examined Public Financial Management (PFM) and Economic Development in Nigeria. The study specifically examined the relationship between total government revenue and economic development in Nigeria, assessed the nexus between total government expenditure and economic development in Nigeria and evaluate the association between total public debt and economic development in Nigeria. Ex-post facto research design was adopted for this study and data used for the analysis were generated from the Central Bank of Nigeria Statistical Bulletin (CBN, 2020) for 20 years, spanning 2001 to 2020. This study made use of descriptive statistics to show the mean, standard deviation, minimum and maximum values of the variables used in the study. This was followed by correlation analysis, unit root analysis, co-integration analysis and long-run and short-run estimation results. Post-estimation tests included (serial correlation LM test, heteroskedasticity and normality test).
Findings from the study revealed that; total government revenue has a positive and insignificant effect on economic development in Nigeria to the tune of 0.0099(p=0.1161>0.05); total government expenditure has a negative and significant effect on economic development in Nigeria to the tune of -0.0348(p=0.0334<0.05); there is a positive and insignificant effect of total public debt on economic development in Nigeria in terms of Human Development Index (HDI) to the tune of 0.0036(p=0.2331>0.05). The study concluded that Public Financial Management has insignificant positive relationship on Economic Development in Nigeria. It is recommended that Borrowed funds should be utilized to help the nation build her infrastructure.