The impact of pubic expenditure in developing economy, a comparative study of Nigeria and Britain specifies a linear public expenditure functions.
Public expenditure can be seen as the measures through which allocate efficiency or Pareto Optimality can be attained, it comes in the commanding heights of the economy and take all major decisions for allocation of scarce economic resources efficiently and effectively.
The government through its activities of levying taxes, undertaking expenditures on commodities, making direct money transfers to individuals and /or firms as well as the establishment of regulatory standards for the operation of her economy.
Therefore, given the influence of public expenditure on the demand and supply patterns in the economy, public expenditures carries the implications.
For stability, growth and development, hence the social welfare and distributive justice are directly implicated.
To determine the extent to which the repressor affects the regress, data yeas collected for a eight year period f 1996 – 2003 from secondary data sources. The ordinary least square regression analysis was used to analysis the data collected the standard error test and the t-test was used to treasure the size f the error in the estimates and to test the reliability of the parameter estimates respectively. Also the analysis of variance (ANOVA) was used to test the overall significance f the regression analysis model, which shared that the R2 statistically significant.
The study at the end made some necessary recommendations that should be adopted by government and its authorities for improvement of public expenditure vis-a vis standard f living f the citizens.
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