By Ene, Stella Azuka
Classical economists contend that a relationship always exists between government expenditure and revenue. There are various sources of revenue to government. Loan, which translates into debt, is a form of government revenue classified as capital receipt. Debt accumulation in itself however is not wrong, especially with policies that inspire confidence in the debtor's ability to manage his affairs effectively. However, expenditure by government has been on the increase. The answer to the level of government expenditure that is tolerable cannot in the end be resolved by recourse to fact or logic. It must be sensitive to values.
This study sets out to find out if this statement is true in the case of the old
Anambra State. In this regard, this paper tried to examine the sources of
government capital Receipts and the contribution of such sources to the capital expenditures of the State.