Growth of Public Expenditure:

In most countries of West Africa, government expenditure has been growing over time. The reasons for this cannot be far fetched.

a. Increasing population: As the population increases, there are many more people requiring schools, hospitals, and other government-supplied amenities.

b. Inflation: Government expenditure usually exhibits a rising trend because of rising price level over time. For example, items of government expenditure become more expensive and contracts and salaries are periodically adjusted upward in line with inflation rate.

c. Crises and wars: It costs more to arrest crisis and also to prosecute wars e.g. civil wars in Nigeria, Liberia, Sierra Leone and Sudan.

d. Growth in national income: The growth of public expenditure is functionally and positively related to national income. As the level of national income rises, so also is the level government expenditure.

e. Development projects: After independence, most West African governments embarked on development projects, especially in the areas of dam construction, electricity, water supply, etc. The implementation of such projects has partly explained the growth in government expenditure.

f. Public debt servicing: The servicing of both domestic and external public debts requires large payments of interest and principal as they fall due. This has also contributed significantly to the growth of government expenditure.

g. Increased urbanization: Increasing rate of rural urban migration of people also translates into increasing demand for social amenities such as road, water supply, electricity, sanitation services, and consequently an increase in government expenditure.

h. Changing political and bureaucratic structure: As borne out of Nigerian experience, the various changes in its administrative and bureaucratic structure, from a four regional structure, to nineteen and now thirty six states have meant an upsurge in public expenditure in administration and governance.