Mountain Top University Library

The relationship between public expenditure and economic growth is continually generating arguments among scholars in the global world. Government performs two functions – protection (and security) and provision of certain public goods. This study was aimed at appraising the relationship between public expenditure and economic growth over the years (1980-2018).This study was descriptive in nature and involved quantitative analysis of data..Secondary data was sourced from CBN statistical bulletin to analyze the effect of government expenditure uneconomic growth in Nigeria.The study results indicated that there is a strong and positive correlation between the study variables. Therefore, this indicates that, the government expenditures of Capital and Recurrent expenditures are positively and strongly associated with economic growth. Thus, a positive change that is increase in these expenditures will result to positive impacts on economic performance and its development.The findings also illustrated that, holding other factors constant; the government expenditure (capital and recurrent) which are the independent variables in this study wouldexplain 93% of the variability in economic growth.Based on findings from the empirical analysis, the study proffers that Government should increase its expenditure in order to further drive economic growth, should ensure that adequate budget provision is made for both past and present capital expenditures since they impact the economy positively and they should ensure that capital expenditure and recurrent expenditure are properly managed in a manner that it will raise the nation’s production capacity.