BUDGET FACILITY AND ECONOMIC SECURITY IN THE FACE OF ECONOMIC SHOCKS (2020 COVID-19)

Abstract

Economic security is vital for all economies. The true test of development is anchored on the level of economic security which a society provides to its citizens. Studies have shown that an individual who has economic security is more contented, happy with chances of growth and development. Economic security simply implies that regardless of whatever economic shocks that may occur, the economy’s longevity and prowess will not be adversely affected and will consequently tackle such shocks whether financial, social, etc. Sectors which guarantee economic security when invested in include the health sector, education sector, agricultural sector, research and development, humanitarian affairs and social disaster relief sector. These sectors possess the multiplier effect of economic growth across other sectors consequently guaranteeing economic security. The main objective of this work is to measure the impact of adequate budgetary facility in guaranteeing Economic Security in the health sector especially with shocks like the COVID19 from 2003 to 2018. This paper employed Trend Analysis as a method of estimation. The normative expectation from this study is that the Public Health Expenditure would be a major contributor to Life Expectancy, however inferences drawn from trend analysis is based on adaptive expectations. This normative expectation is consistent with the endogenous theories, which argues that an improvement in capital will improve productivity. Other theories which constitute the theoretical framework of this paper include the production theory, and the Grossman model. However, based on the current reality of the Nigerian health sector, it is highly plausible to have the findings hint to a negative relationship which will in turn reiterate the growing need for a reform in the Nigerian budgetary allocation to the health sector.