ANALYSIS OF THE IMPACT OF PUBLIC DEBT AND RECURRENT EXPENDITURE ON ECONOMIC GROWTH IN NIGERIA
The study examined the effects of recurrent expenditure and public debt on economic growth in Nigeria Secondary data were obtained from Central Bank of Nigeria Statistical Bulletin from 1971 to 2017. Multiple regressions were employed to analyze the relationship between the dependent variable (Gross Domestic Product (GDP)) and independent variables (Recurrent expenditure, public debt, exchange rate, inflation rate and interest rate). Findings revealed that Recurrent expenditure, Public debt, and exchange rate have positive significant effects on the GDP in Nigeria (= .9739044; t = 14.90; P>[t]= 0.000, = .326589; t= 2.49; P>[t]= 0.017, = .9001574; t= 5.97; P>[t] = 0.000 respectively). But interest rate impacted GDP negatively in Nigeria ( = -1.123109; t= -2.84; P>[t] = 0.0070. it is therefore concluded that Public debt and recurrent expenditure have positive significant impact on economic growth in Nigeria. In addition public debt assisted government in upsetting recurrent expenditure in Nigeria. Also, interest rate has negative significant impact on economic growth in Nigeria. It is recommended that government should utilize the public debt both domestic and external debts obtained effectively and efficiently in order to improve economic growth in Nigeria. If this public debt can be managed effectively, it will boost economic growth both in the short run and in the long run.
