An Assessment of the Impact of Government Expenditure on Infrastructures: Evidence from Nigerian Health Sector Performance

Abstract

It is evident that Nigeria over the years spent huge amount of money with a view to improving health system. In view of the aforementioned, this study was conducted to assess the impact of government expenditure on social service in Nigeria with emphasis on health sector performance. Secondary data were sourced from CBN bulletins, World Bank publications as well as the Nigerian Budget Office Portal. Life expectancy and infant mortality rates were measured against government expenditure from 2000-2013. The study employs Pearson’s moment correlation and found that government expenditure is inversely and significantly related to infant mortality implying that an increase in government budget to the health sector can cause a decrease in the rate of infant mortality. On the other hand, weak positive and statistically insignificant relationship exists between government expenditure and life expectancy. It is therefore recommended that government should allocate more funds to health sector and encourage private sector financing of health sector as part of their corporate social responsibility.

Keywords: Government Expenditure, Infant Mortality, Life Expectancy, Social Infrastructure, Health Sector Performance.