Examining the Association between Government Budget and Poverty Rate in Nigeria

Abstract

This study empirically examines the connection between public debt management, youth unemployment, corruption and poverty eradication through ratio and statistical analysis. It relies on secondary data from the Nigerian annual budget covering 2018 to 2022. The statistical analysis rests on Descriptive, Pearson correlation, r, and linear regression r. The Pearson correlation statistical analysis result shows no significant positive relationship between poverty eradication, youth unemployment and public debt management. However, the relationship that exists between poverty eradication and corruption is negative. Findings show a positive, not significant effect of youth unemployment on poverty eradication and corruption. Public debt management's effect on poverty eradication is negative. The ratio analysis result shows that the poverty rate continues to rise despite increasing budget size and debt financing costs. Youth unemployment is the slightest problem relating to poverty eradication, followed by public debt management, while corruption is reversing all the government efforts on poverty eradication in Nigeria. Therefore, this study suggests a revised IMF-World Bank debt sustainability formula to highlight the real borrowing strength of an economy to improve the results of poverty eradication efforts.