The Impact Of Government Expenditure On Income Distribution In Nigeria Between Financial Years 1971/72 And 1976/77

ABSTRACT

This thesis attempted an estimation of the impact of Federal government expenditures on income distribution. Using documentary, survey and case study research methods, and employing statistical methods of analyses, the study estimated the distribution of Federal government expenditures for 1971/72 and 1976/77 financial years among the regions and the distributional impacts of 1976/77 Federal government expenditures on education, health, housing, electricity and general services among income-groups. The study found that the Federal government expenditures have reduced regional disparities in income between 1971/72 and 1976/77. When the impact of government expenditures among income-groups was considered, it was found that it was regressive, that is pro-rich. Thus, Federal government expenditures in Nigeria have been responsible for perpectuating income inequality. This result is contrary to government's declared objective in successive development plans, of using its expenditure policy in reducing inequality song income-groups. Suggestions were offered to enable government expenditures become progressive that is pro-poor.