Government Budget Deficit and Economic Performance in Nigeria

📄 Project Abstract

The relationships between government budget deficits and macroeconomic performance have received tremendous attention amongst researchers and policy makers around the globe. Persistent increases in budget deficits have assumed greater height in many emerging economies like Nigeria (Oladipo and Akingbola, 2011). However, evidence has shown that government budget deficit has been an issue of discuss in Nigeria because of the persistent increase recorded since 2000 till date as shown on the figure 1 below. For example, budget deficit was about N 2 billion and N 3.9 billion in 1980 and 1981 respectively. In 1986, it rose to N8.2 billion and later fell to N5.8 billion in 1987. Notwithstanding the significant recorded fall from 1987 to 1999, between 2000 and 2004, there was an amazing increase which led to a record of about N 101 and N 609.2 billion in 2006 and 2007 respectively. However, considering the international financial crisis that eroded world economy in 2008, its ugly consequence ...