Full Project-IMPACT OF PUBLIC EXPENDITURE TOWARDS ECONOMIC GROWTH AND DEVELOPMENT A COMPARATIVE ANALYSIS BETWEEN NIGERIA AND BRITAIN

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CHAPTER ONE

INTRODUCTION

1.0 BACKGROUND OF THE STUDY

Amongst scholars, economic growth have been referred to as the study process by which the productive capacity of the economy is increased overtime to being about increases in the output of goods about services sand rising levels of national income.In short, it mean growth in the output of goods and services (i.e growth in GNP) However, the function of public expenditure and its impact to economic development could be traced by throwing more lines on the meaning of public expenditure.According to an economics dictionary by J. L HANSON:
Public expenditure have bee stated and the amount of money spent by a state or a supreme recognized region on its defense. Education and other social services, interest on National debts, capital investments etc. Therefore, public expenditures on economic development is traditionally applied tot he package of policy problems that involves the use of fax and expenditure measures.
This economic development measures have been seen as a conscious and deliberate effort by the government to influence, direct and control the path of progress f the country.It involves the government’s directive and actives interference with the market mechanisms either to supplement or to supplant it.It is generally done by directly allocating or influencing the allocations of the society’s resources (both human and maternal) according to some predetermined objectives and thus, it involves the government in conceiving, initiating, regulating and controlling economic activities in the system.

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