The Link between Public Debt and Government Expenditure Pattern: The Nigeria Experience
This study empirically examines the relationship between public debt and government expenditure in Nigeria from 1980 to 2013. The data which is purely secondary data was sourced through the Central Bank of Nigeria Statistical Bulletin for various years. The study estimated a model with public debt as the dependent variable while the capital expenditure and recurrent expenditure are the independent variables. Using the ordinary least square regression technique, the t test statistic results at 5% level of significance, revealed that there is a significant relationship between public debt and government expenditure in Nigeria. It then recommends that the government of Nigeria should make haste to reduce its recurrent expenditure and embark more on capital expenditure so as to meet the Vision 20:2020. Again, the economy of Nigeria should be diversified to reduce the over dependence on crude oil revenue. If the diversification programme is embarked upon, it will definitely reduce the tendency of the government accumulating public debt.