Impact of Government Expenditure on Socio-Economic Development of Borno State

Abstract

Government undertakes public spending in order to enhance the socio-economic status of its citizens. This study examines the impact of government expenditure on socio-economic development of Borno State. The study collected annual secondary data from the annual accounts of Borno State government and Global Data Lab (GDL) from the period 2013 to 2021. The data were analyzed using multiple regressions. The Augmented Dickey Fuller (ADF) and Phillip-Peron (PP) unit root tests were conducted on all the variable showed non-stationary at level but stationary at first differencing. The study established that there is a significant impact of economic, social and administrative capital expenditures on household income levels in Borno State. The study recommends that the State government should be spending more on economic and social capital expenditures in order to raise income levels in the long run which would cause an improvement in the socio-economic well beings of its citizens. The state government should ensure that the funds are channeled effectively in productive areas in communities in order to improve household income. The state government should support value creation in critical sectors of the economy that employs the larger population to further reduce poverty in the state. Also, Government spending should be oriented towards increasing investment in physical and human capital.