Budget deficit on economic development in Nigeria
No Thumbnail Available
Date
2024-06
Authors
Nnoruga, O.M.
Olunkwa, N.C.
Iwegbu, O.
Nwokoma, N.I.
Journal Title
Journal ISSN
Volume Title
Publisher
Modern Business Press
Abstract
This study investigates the effect of budget deficit on economic development, using time series data spanning from 1981 to 2023. To determine the effect of budget deficit on economic development, the study employs the Autoregressive Distributive lag and bound cointegration technique with the results indicating that a long-run equilibrium relationship exists between budget deficit and economic development in Nigeria over the period. The result further affirms that budget deficit has a negative and significant effect on per capita income and the human development index in the long run. It however, it does not have any effect on the human development index in the short run. Based on the findings, the study recommends that policy makers should prioritize strategies aimed at addressing budget deficits while simultaneously safeguarding investments in human capital and fostering inclusive economic growth. This necessitates implementing measures to enhance fiscal discipline, such as rationalizing government spending, improving tax administration, and exploring revenue diversification options.
Description
Scholarly article
Keywords
Citation
Nnoruga, O.M., Olunkwa, N.C., Iwegbu, O., & Nwokoma, N.I. (2024). Budget deficit on economic development in Nigeria. In E.A. Onwioduokit, & G.E. Akpan (eds.). Essays in public finance: A tribute to Professor Akpan H. Ekpo (Chp. 6, pp. 86-99). Akwa Ibom, Nigeria: Modern Business Press.