Abstract:

The role of budgeting and budgetary control in any economy cannot be over-emphasized. The slow pace of economic growth in Nigeria has attributed in part to the inadequate budgeting and budgetary control measures in the agricultural sector. The main objective of this study is to examine the impact of budgeting and budgetary control as critical elements in enhancing economic growth in Nigeria. To achieve this objective, relevant secondary data were sourced from Central Bank of Nigeria (CBN), Statistical Bulleting and Annual Reports spanning from 1985-2015. Using annual time series data, a linear model of Agricultural contribution to GDP (AGDP), Agricultural recurrent expenditure (ARE), Agricultural capital expenditure (ACE), Agriculture contribution to GDP growth rate (AGDPGR) and Economic growth (GDP) was constructed and estimated using series of tests including regression, stationary test, co-integration test and the vector error correction model test amongst others. The results indicated that agricultural recurrent expenditure (ARE) has positive and significant relationship with gross domestic product (GDP), while agricultural contribution to GDP (AGDP) and agricultural GDP growth rate were negatively and significantly correlated to gross domestic product (GDP). The study recommends that government should allocate more revenue to the agricultural sector which will enhance a long run positive relationship with the gross domestic product and also encourage farmers through provision of loans and infrastructural facilities.