The study analyzed budget variance impact on the Nigeria's economic development between 1981 and 2022. Budget was measured using budget variances, and economic development was assessed using Per Capita Income (PCIN). Data were retrieved from the Statistical Bulletin of the Central Bank of Nigeria and the development indicators of the World Bank. Univariate regression analysis was performed with traditional Dickey Fuller Unit Root Tests. The study’s result showed a positive and statistical significant effect between budget variance and economic development at a P value of 0.045 and 0.6822. It was concluded that funds should be allocated to high-impact projects that contribute substantially to economic development and help reduce inefficiencies and mismanagement of funds. The study recommended that timeliness in budgeting is crucial and important to various budget heads, therefore, funds should be expended as at when due to avoid fluctuations in prices of already survey resources.