CAPITAL EXPENDITURE BUDGETS AND INFRASTRUCTURAL DEVELOPMENT COST IN COASTAL LOCAL GOVERNMENT AREAS IN AKWA IBOM STATE

Abstract

The study was carried out to assess the relationship between Capital Expenditure Budgets and infrastructural development cost of Coastal Local Government Areas in Akwa Ibom State for the 2017-2021 fiscal year. It was undertaken principally to examine the relationship between budgeted and actual capital expenditure and actual capital expenditure on education, roads, health, water supply, electricity, and housing. An ex post facto research design was used for the study. A sample size of three Local Government Areas was drawn from the select coastal Local Government Areas for the study. Descriptive Statistics and correlation analysis were used to analyze the data and to test hypotheses at 95% Confidence Interval. Findings showed that there is no significant relationship between road development and capital expenditure budget in coastal Local Government Areas in Akwa Ibom State. This result showed a negative relationship but not an insignificant one. The result also showed that there is a significant relationship between healthcare development and capital expenditure budget in coastal Local Government Areas in Akwa Ibom State. This result showed a positive and significant relationship. There is no significant relationship between qualitative education and capital expenditure budget in coastal Local Government Areas in Akwa Ibom State. This result showed a positive relationship but not a significant one. There is no significant relationship between the provision of rural electricity and the capital expenditure budget in coastal Local Government Areas in Akwa Ibom State. This result showed a positive relationship but not a significant one. It was recommended that the Local Government Areas should improve on their budgetary allocation to infrastructural development and also ensure that their budgets for capital expenditures are reasonably implemented.