Budget deficit could be seen as a
situation where total expenditure exceeds the revenue for a given period. When
a deficit is involved, it is important to find remedy for financing such
deficits so as to eradicate the negative effects. The growth and persistence of
developing countries in recent times has brought the issues of budget deficit
into sharp focus. The issues surrounding fiscal deficits are certainly not new,
but the economic development of the past decade developing the interest of
fiscal policy issues. In the developing countries like Nigeria, budget deficits
have been blamed for much of the economic crises that beset them about two
decades ago resulting in over indebtedness and the debt crises, high inflation,
poor investment performance and growth.
THEORETICAL LITERATURE
No issues in economic policy have
generated more debate over the past decade then the effect of government budget
deficits. Politicians of various ideologies argue that deficit reduction is
critical to the future of the major economies. Although the economics
profession is more decided over the issues, many economists share the view that
deficits are harmful, and perhaps even disastrous. When economists and policy
makers decry deficits, they cite diverse reasons. Thus, despite almost
unanimous concern over deficits, there is considerable controversy about what
effect deficit have on the economy.
READ RELATED TOPICS ON
DEFICIT BUDGET
SUMMARY, CONCLUSION AND
RECOMMENDATION OF BUDGET DEFICIT
METHODOLOGY OF BUDGET
DEFICIT (TECHNIQUES, MODEL, STATISTICAL DATA