Analysis of the Budget Trend of Capital Allocation to Infrastructure Development in South South Nigeria

Infrastructural developments of states are dependent on the capital expenditures allocated in the annual budgets of governments. The strength of government emphasis on infrastructure development can be ascertained through the trend of capital expenditure over years. In this study the trend of capital allocation in the budgets of South South States' governments of Nigeria is analysed spanning a period of 11 years 2007 2017 . The population of this study is the 6 states of South South Nigeria. Secondary data were collected from yearly budgets or appropriation bills of the state governments from state and national publications. Employing descriptive statistics and analysis of variance ANOVA , the study reveals that capital expenditure as a percentage of the total revenue expenditure of government is higher in the South South states than that of the rest states of the nation as an entity in a ratio of 60.14 to 41.76 . It is also higher than recurrent expenditure across the South South states in a ratio of 60.14 to 39.86 . The spatial distribution of capital expenditure significantly differs across the states. Thus, forecasting capital expenditure from one state to another is not feasible. It is recommended that the states should improve upon their allocation of more funds to capital expenditures than recurrent expenditures, while insisting on effective implementation of budgetary allocated capital. Beals, Sampson Alele "Analysis of the Budget Trend of Capital Allocation to Infrastructure Development in South-South Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-4 , June 2020, URL: https://www.ijtsrd.com/papers/ijtsrd31720.pdf Paper Url :https://www.ijtsrd.com/management/accounting-and-finance/31720/analysis-of-the-budget-trend-of-capital-allocation-to-infrastructure-development-in-southsouth-nigeria/beals-sampson-alele