Impact of Disaggregated Government Expenditure on Human Capital Development in Nigeria: 1970-2022

Abstract

Public expenditure is concerned with the utilisation by the government of the nation's resources with regard to the rules, regulations, and policies that shape planning, budgeting, forecasting etc., and the coordination of the inflow and outflow of funds aimed at maximizing the set objectives of the institution. Human capital has gained significant importance in the growth trajectory. However, the component of public expenditure that properly induces its development remains debatable in Nigeria. The study investigates the Disaggregated Impact of Government Expenditure on Human Capital Development in Nigeria: 1970-2022. The study made use of secondary data adopting the Error Correction Mechanism (ECM) as a method of analysis. The finding revealed that there is a long-run relationship between government expenditure and human capital development which is proxy by education and health. The study, therefore, recommended that Nigeria should drive growth processes with deliberate policies aimed at encouraging an appropriate mix of the two expenditure heads to drive needed human capital development for overall economic growth. This no doubt, if not well managed, will further impede any form of investment in capital formations in the country.

Keywords: Expenditure, Health, Education, Disaggregated, Government expenditure

DOI: 10.7176/JESD/14-14-05

Publication date:August 31^st 2023