The Impact of Public Spending on Poverty Reduction in Nigeria (1981-2015).
INTRODUCTION
1.1 Background of the Study
The relationship between government spending and poverty reduction has continued to generate series of debate among scholars.
The size of government spending and its effect on poverty reduction, and vice versa, has been an issue of sustained interest for decades.
The government performs two functions- protection (and security) and provisions of certain public good (Al-Yousif , 2000).
Protection function consists of the creation of rule of law and enforcement of property rights. This helps to minimize risks of criminality, protect life and property, and the nation from external aggression.
Under the provisions of public goods are defense, roads, education, health, and power, to mention few. Some scholars argue that increase in government spending on socio-economic and physical infrastructures encourages economic growth.
For example, government spending on health and education raises the productivity of labour and increase the growth of national output.
1.2 Statement of the Problem
Over the years public expenditure has been on the rise without seen the consequent effect on the welfare of the populace.
The relationship between government spending and poverty reduction has continued to generate series of debate among scholars.
In Nigeria, poverty has been on the increase which can be attributed to inequality existing in the economy such as corruption, macro-economic instability and inconsistency in government policies.
In an ordinary framework, poverty is concern with absolute, modulate or relatively standard of living or inability to attain a minimal standard of living.
Poverty is found to be at the worst in the rural areas. Which is characterized by malnutrition lack of standard education, low life expectancy and sub-standard housing?
In attempt to alleviate these problems, three actors are observed in the literature as being involved in any giving country.
Namely; the three ties of government (federal, state and local government), international organizations and nongovernmental organizations (NGO’s).
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