GOVERNMENT BUDGETARY EFFICIENCY AND UNEMPLOYMENT: A WEST APPROACH –NIGERIA.

Abstract

This study examined the impact of Government Budgetary efficiency on Unemployment in Nigeria. The study examined three specific objectives; the aim is to establish the effect government budgetary outcome has on unemployment in the Nigerian over the period of 2000 to 2023 by applying the Error Correction Model Approach. The findings showed that if all other factors stay constant, and government budgetary efficiency increases at a rate of one unit per year, it will cause unemployment to decrease. This suggests that the influence of government budgetary efficiency has a reducing effect on unemployment and this effect is statistically significant. This implies that unguided spending of government causes unemployment in Nigeria. Also government capital has the capacity to decrease unemployment in Nigeria. while government recurrent expenditures has a significant impact on unemployment as increase in recurrent expenditure causes reduction in unemployment in Nigeria and Inflation rate has no significant influence on unemployment rate in Nigeria as shown by the none significant t-stat values and probability values. The study concludes that the level of government budgetary efficiency may have a significant effect on unemployment in Nigeria and recommends that government should formulate and monitor her fiscal policy to check the channels of increase government spending to find out why the huge spending has not transmitted into a viable economic performance in terms of price stability and growth that guarantees employment creation.