Effect Of Rising Debt Burden and Public Expenditure Pattern on Revenue Sustainability in Nigeria

AFRAG027

Effect Of Rising Debt Burden and Public Expenditure Pattern on Revenue Sustainability in Nigeria

Ebe, Emmanuel Chukwuma1; Eze Charles Uzodinma2; Ubesie, Cyril Madubuko3

1, Department of Accounting, Michael Okpara University of Agriculture, Umudike, Nigeria.

2West African Examination Council (WAEC), Abakaliki.

3Department of Accountancy, Enugu State University of Science and Technology Agbani, Nigeria

1Corresponding author email address: idenyiemihe644@gmail.com

Abstract

This study investigated the effect of increasing public debt burden and expenditure pattern on revenue sustainability in Nigeria. The aim of the study is to ascertain the effect of debt burden and public expenditure pattern on revenue sustainability in Nigeria. Secondary data spanning the period 1999 through 2018 was generated from the CBN statistical bulletin. Multiple regression analysis was adopted using SPSS version 22. Other tests conducted include autocorrelation, normality. Result revealed that the rising debt burden, public expenditure      pattern      and    corruption impacted negatively on revenue sustainability in Nigeria. The study concluded that diversification of the economy is inevitable but for more thriving diversification of Nigerian economy to manifest, the debt burden must be drastically reduced and the expenditure pattern changed. The study recommend restriction on borrowing to capital projects that will encourage diversification and strict monitoring on the uses of borrowed funds to ensure compliance, increase in the allocation to capital expenditure in the budget to conform to international best practices, automation of the accounting system and adoption of integrated government management system in all ministries and parastatals as a means to fight corruption, fully fledged International Public sector Accounting System (IPSAS) to enhance transparency and accountability in governance, reduction in the cost of governance.

Key words: Debt Burden, Public Expenditure pattern, Revenue sustainability and Nigeria economy.

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