DOMESTIC DEBT SUSTAINABILITY IN NIGERIA: EVIDENCE FROM EVALUATION OF ALTERNATIVE METHODOLOGIES

📄 Project Abstract

One of the major macroeconomic goals is economic growth. Any responsible country or government will be under obligation to ensure the growth (or at least a non-decreasing state) of her economy. The concern of a nation for economic growth, in the absence of immediate resources, naturally necessitates a government's expenditure being greater than her revenue. Given the resources required in development, the need to achieve minimum standards of living, the urgency to alleviate poverty and the importance of creating employment, infrastructure and fostering growth, governments may at times run up expenses that is greater than her revenue. At such time the need to cover the gap by borrowing becomes inevitable. Financing such a gap could be done in so many ways like increased taxation, ways and means, debt creation and/or reduction in expenditure. Whatever fiscal alternative adopted, like every other economic planning concept, needs adequate management to achieve the desired goal. Debt financ...