IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 5 NO. 1 2019

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Deficit Budget and Its Effect on the Growth of Nigeria Economy

C. Emefiele, E. N. Obim & R. I. Ita

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Abstract

The study empirically examined deficit budget and its effect on the growth of Nigeria Economy. The specific objectives were; to examine the effect of deficit, inflation and government expenditure on the growth of Nigeria Economy. Secondary sources of data was extracted using statistical bulletin of Central Bank of Nigeria and the adoption of multiple regression analysis. Based on the analysis, the following findings revealed thus; there is no significant relationship between deficit budget and economic growth (GDP); there is no significant relationship between inflation and economic growth (GDP); and there is a significant relationship between government expenditure and economic growth (GDP). The following recommendations were proffered; government should strive to finance budget deficit by improving on the present revenue base rather than resulting to domestic borrowing, this can be achieved by improving its revenue sources and efficient pursuit of tax reforms. Also recommended that effective mechanism should be put in place to ensure that any government spending is judiciously utilized to contribute to economic growth

keywords:

Deficit budget, inflation, government expenditure, GDP.

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