FISCAL DISCIPLINE AND HUMAN DEVELOPMENT in KOGI STATE: A CRITICAL EXAMINATION.

This study critically examines the relationship between fiscal discipline and human development in Kogi State from 2007 to 2017, with a focus on assessing how fiscal variables influence capital expenditures directed at human development. Data were sourced from the Kogi State Annual Report and the Office of the Auditor General to Kogi State Government (2017). Using Ordinary Least Squares (OLS) regression analysis, the study evaluated the effects of fiscal deficit, state internally generated revenue (IGR), and federal allocations on budgetary allocations to capital expenditure for human development. Empirical findings revealed that fiscal deficit exerted a significant negative effect on capital expenditure allocations for human development, while state IGR and federal allocations demonstrated positive impacts. The study concludes that weak fiscal discipline, particularly in managing fiscal deficits, undermines the state’s capacity to prioritize human development through capital investments. Recommendations include enacting stringent fiscal controls to curb deficits, implementing policies to enhance IGR through improved financial frameworks, and ensuring transparent utilization of federal allocations to bolster human development initiatives. These measures are critical for fostering sustainable progress in education, healthcare, and social infrastructure in Kogi State.