Budgetary System Reforms in Nigeria: Implications for Poverty Reduction
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Medwell Journals
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This study was conceptualized to investigate the influence (if any) of budget reforms specifically the Medium Term Expenditure Framework (MTEF) and the Fiscal Responsibility Act (FRA) on related reforms and poverty reduction in Nigeria. Budgetary reforms in particular and Public Finance Management (PFM) reforms in general are believed to bring about improvement in the budgetary outcomes which translates directly or indirectly to improvement in national wellbeing including poverty reduction. Conceptually, an indirect association exist between budget reforms and poverty reduction, an empirical nexus is however a moot. Historical time series data were collected representing 7 years after the adoption of MTEF and 5 years before and 5 years after the enactment of FRA. Utilizing the pre-test/post-test design of a Paired sample t-test, the results revealed that Poverty Index (POI) in Nigeria reduced after the introduction of both MTEF and FRA. However, while the reduction after the introduction of MTEF was statistically significant, the reduction after the enactment of FRA was not significant. The study recommends the enforcement of stricter adherence to budgetary and other public finance management reforms in order to generate greater impact on the economy.
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HG Finance