The Impact of Government Expenditure on Standard of Living of the People of Nigeria

The Nature and Constituents of Government Expenditure

Government expenditures refer to the expenses that government incurs for its own   maintenance, for the society and the economy as a whole (Weil, 2009). Government spending reflects the policy choices of government. Once government has decided upon the type and quantity of goods and services to provide, government spending represents the cost of carrying out these policies (Weil, 2009).

The rationale behind the need for expenditure is associated with the existence of externality or market failures, there is no reason to assume that additional public sector investments would be more productive than the private sector investments (Tanzi, 1997). [Read more…]