Budgetary System Reforms in Nigeria: Implications for Poverty Reduction
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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 translate 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 before and 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 deign of a Paired
sample t-test, the results revealed that Poverty Index (POI) in Nigeria reduced after the introduction of both
MTEFand FRA. However, while the reduction after the introduction ofMTEF was statistically significant, the
reduction after the enactment FRA was not insignificant. The study ecommends the enforcement of stricter
adherence tobudgetaryand other public finance management reforms in order to generate greater impact and
on the economy.
Keywords
HF5601 Accounting, HG Finance