Our Archives

Call 09159097300, or 09067754232 for any enquiries.

Project Topic:

BALANCING BETWEEN RECURRENT EXPENDITURE AND CAPITAL EXPENDITURE IN THE PUBLIC SECTOR BUDGETS, A CASE STUDY OF AFIKPO NORTH L.G.A

Project Information:

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 67 ::   Attributes: Data Analysis,abstract, table of content, references ::   3,539 people found this useful

Project Body:

CHAPTER ONE

  1. INTRODUCTION

1.1   BACKGROUND OF STUDY

In Nigeria for instance, despite the huge amount of public expenditures, there is still an insignificant level of development witnessed. Public expenditure on all sectors of the Nigerian economy is expected to lead to economic growth in the sense that capital and recurrent expenditure will boost the productive base of the economy which in turn will lead to growth. The interest by economists in Nigeria and other jurisdictions on the role of government expenditure is still inconclusive. Barro (2000) endogenize government spending in a growth model and analyze the relationship between size of government and rates of growth and saving. He concluded that an increase in resources devoted to non-productive government services is associated with lower per capita growth. Therefore, government expenditure which enhances economic growth should be tailored towards productive services.

According to Barro and Grilli (2004), Government spending (or government expenditure) includes all government consumption and investment but excludes transfer payments made by a state. Government expenditure can be for the acquisition of goods and services for current use to directly satisfy individual or collective needs of the members of the community or it can be for acquisition of goods and services intended to create future benefits such as infrastructure investment and the expenditures can represent transfers of money, such as social salaries and cost of administration.

Therefore, Government expenditure (like expenditure by private sector firms) can be categorised into either current expenditure or capital expenditure. Current expenditure is recurring spending or, in other words, spending on items that are consumed and only last a limited period of time. They are items that are used up in the process of providing a good or service. In the case of the government, current expenditure would include wages and salaries and expenditure on consumables - stationery, drugs for health service, bandages and so on.

By contrast, capital expenditure is spending on assets. It is the purchase of items that will last and will be used time and time again in the provision of a good or service. In the case of the government, examples would be the building of a new hospital, the purchase of new computer equipment or networks, building new roads and so on. The breakdown between these two types of spending is very important. While capital expenditure has a lasting impact on the economy and helps provide a more efficient, productive economy.

Current expenditure, however, doesn't have such a lasting impact. Once the money is spent, it is gone and the effect on the economy is simply a short-term one. It is against the importance of these two categories of expenditure and the increasing quantum made by the Nigeria government over the years that, this seminal paper examines the impact of government expenditure on economic growth in Nigeria from 2007 to 2010.

1.2   STATEMENT OF THE PROBLEM

          Capital expenditure is what brings in most of the income to the government to settle their recurrent expenditure in the public sector. The problem here could be as a result of much allocation of funds in the recurrent expenditure than the capital expenditure which might make the government to be at a loss in a particular accounting year and so making it difficult to balance the two expenditure for that year. The government could be on the safe side if capital expenditure is higher than the recurrent, but anything short of that, the government tends to be losing for that year. Finally, several research has been carried out on the impact of recurrent expenditure and capital expenditure but not even a single research has been carried out on the balancing between recurrent expenditure and capital expenditure in the public sector budgets. A case study of Afikpo north local government.

1.3   AIMS AND OBJECTIVES OF STUDY

        The main of the study is to examine the balancing between recurrent expenditure and capital expenditure in the public sector budgets. Other specific objectives of the study include:

  1. to determine the factors affecting recurrent expenditure and capital expenditure in the public sector budgets.
  2. to determine the extent to which recurrent expenditure and capital expenditure affects public sector budgets.
  3. to determine the influence of recurrent expenditure and capital expenditure on public sector budgets.
  4. to proffer possible solutions to the problems.

1.4   RESEARCH QUESTIONS               

  1. What are the factors affecting recurrent expenditure and capital expenditure in the public sector budgets?
  2. What is the extent to which recurrent expenditure and capital expenditure affects public sector budgets?
  3. What is the influence of recurrent expenditure and capital expenditure on public sector budgets?
  4. What are the possible solutions to the problems?

1.5   STATEMENT OF RESEARCH HYPOTHESIS

H0:    Recurrent and capital expenditure has no significant effect on public sector budget.

H1:         Recurrent and capital expenditure has a significant effect on public sector budget.

1.6   SIGNIFICANCE OF STUDY

        The study on the balancing between recurrent expenditure and capital expenditure in the public sector will be of immense benefit to the entire Afikpo local government in the sense that it will enable the government curtail most of the expenses in that, the government sector can revert to a lower level of spending and personnel can be re-directed to the business sector. The study will also enable the government to do more of capital expenditure so as to have what to take care of the recurrent expenditure. Finally, the study will contribute to the body of existing literature and knowledge to this field of study and basis for further research.

1.7   SCOPE OF STUDY

        The study on the balancing between recurrent expenditure and capital expenditure in the public sector budgets is limited to Afikpo north local government area.

1.8   LIMITATION OF STUDY

Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.9   DEFINITION OF TERMS

Balancing                Offset or compare the value of (one thing) with another.

Recurrent       Occurring often or repeatedly.

Expenditure           the action of spending funds.

Capital    Is a term for financial assets or their financial value (such as funds held in deposit accounts), as well as the tangible factors of production including equipment used in environments such as factories and other manufacturing facilities.

Public Sector  The part of an economy that is controlled by the state.

Budgets   Is a financial plan for a defined period of a year.

 

 


Get The Complete Project »

Project Department:

MORE BANKING AND FINANCE FREE UNDERGRADUATE PROJECT TOPICS AND RESEARCH MATERIALS

Instantly Share this Project On Social Media:

CLOSELY RELATED BANKING AND FINANCE FREE UNDERGRADUATE PROJECT TOPICS AND RESEARCH MATERIALS

A CRITICAL ANALYSIS ON THE USE OF FINANCIAL STATEMENTS IN ASSESSING THE PERFORMANCE OF AN ORGANIZATION (A CASE STUDY OF FIRST BANK NIGERIA)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 72 ::   Attributes: Questionnaire, Data Analysis  ::   6711 engagements

ABSTRACT This project work is carried out to examine the contribution of micro finance banks to the development of Small and medium scale enterprises in Nigeria. The Brass micro finance bank is used a...Continue reading »

A STUDY ON THE ACCEPTANCE AND ADOPTION OF THE CBN CASHLES POLICY IN PORT HARCOURT, NIGERIA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 76 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   5118 engagements

CHAPTER ONE INTRODUCTION 1.1. BACKGROUND TO THE STUDY One of the prerequisites for the development of national economy according to Ajayi et al, 2006 is by encouraging a payment system that is secu...Continue reading »

A STUDY ON THE IMPACT OF BUDGETARY CONTROLS ON THE PERFORMANCE OF AN ORGANIZATION (A CASE STUDY OF FIDELITY BANK PLC)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 80 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   5474 engagements

CHAPTER ONE INTRODUCTION 1.1. BACKGROUND OF THE STUDY AND PROFILE OF THE ORGANIZATION Following the uncertainties prevailing in the Nigerian business environment today, managers and stakeholders mu...Continue reading »

ANALYZING PERFORMANCE APPRAISAL TECHNIQUES IN UNION BANK NIG PLC

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 67 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   14523 engagements

CHAPTER ONE INTRODUCTION 1.1. BACKGROUND OF THE STUDY In any evaluation of the condition necessary for the growth and survival of an organization, the role of performance appraisal is a strategic f...Continue reading »

AUDIT INDEPENDENCE: ENHANCING ACCOUNTABILITY AND TRANSPARENCY IN CORPORATE ORGANIZATIONS

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 71 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   4654 engagements

CHAPTER ONE INTRODUCTION 1.1. Background of the study The subject of transparency and accountability in modern day corporate organizations has continued to receive attention as never before. It has b...Continue reading »

CREDIT MANAGEMENT AND ISSUES OF BAD DEBTS IN COMMERCIAL BANKS IN NIGERIA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 68 ::   Attributes: Questionnaire, Data Analysis,Abstract

The article on this topic (credit management and issues of bad debts in commercial banks in Nigeria) is an extract from literature review of the project material. The complete project work would be ma...Continue reading »

What are you looking for today?

TESTIMONIALS:

  • 1. Jayone from FPA said " I had a wonderful experience using UniProjectMaterials,though they did not deliver the material on time, but the content had good quality. I recommend UniProjectMaterials for any project research work.".
    Rating: Very Good
  • 2. Mugisha R from B.U, UGANDA said "Wow, this is great, your materials has helped me alot. Many blessings. I will inform my friends. Thanks. ".
    Rating: Very Good
  • 3. Nwachukwu Ruth Chinyerr from Michael okpara university of Agriculture,umudike said "I really appreciate this. Materials like this are good guides to writing a researchable project.".
    Rating: Good
  • 4. Ibrahim Salama from Kaduna said "Thanks You So Much Sir We Appreciate ".
    Rating: Excellent
  • 5. Ibrahim Salama from Kaduna said "Thanks You So Much Sir We Appreciate ".
    Rating: Excellent
  • 6. Mohammed A.B from Veterinary Laboratory, Zanzibar ,Tanzania said "You are doing good job to assists in research. God bless you.".
    Rating: Very Good

Paper Information

Format:ms word
Chapter:1-5
Pages:67
Attribute:Data Analysis,abstract, table of content, references
Price:₦3,000
Get The Complete Project »

Best Selling Projects

Our Archives