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This research examined the impact of public sector restructuring on the economy. Secondary source of information was used for the study. The findings from the study shows that public sector restructuring draws our attention to the issues affecting the smooth implementation of restructuring efforts especially in the developing countries. The specific objectives of the study are to examine the attainment of the planned resource allocation and the economy, the relationship between efficiency and booming economy, the relationship between functional organization and the relationship between accurate source of capital formation and the economy. Content method o data analysis was adopted to elicit data for this study. The paper revealed, among other things that the public sector had over the years been weakened with an over expanded public expenditure profile, persistent deficits financed by domestic and external borrowing with resultant high debt service burden, breakdown of the traditional instruments of control leading to corruption and misappropriation of funds, incidence of ghost workers, poor costing of programmes and projects, a large portfolio of abandoned/on-going projects especially in efficient and wasteful parastatals. Not only that the system has accumulated pension arrears but some states and agencies of the federal government are beginning to accumulate salary arrears and payments due to contractors and suppliers. Amidst these challenges, public sector restructuring is a demanding task and should not be seen as a quick solution for problems militating against our national development. It was recommended among others that the it is advisable to eliminate duplication of organizations to save cost and to channel the resources to other project.

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How to Cite
Peter, I. (2019). The Impact of Public Sector Restructuring On the Economy. GIS Business, 14(4), 67-76. Retrieved from