effect of budget deficit on economic growth
The effects of budget deficits on economic growth is an important topic in macroeconomic analysis of tax policy. The study found an inverse long run relationship between budget deficit and economic growth, especially as the deficits have often been used to finance recurrent expenditures, suggesting that . The cookie is used to store the user consent for the cookies in the category "Analytics". 7; April 2012, COMSATS Institute of Information Technology, Islamabad; Bahria University. 11. This cookie is set by Addthis.com to enable sharing of links on social media platforms like Facebook and Twitter, This cookie is used to recognize the visitor upon re-entry. This cookie allows to collect information on user behaviour and allows sharing function provided by Addthis.com. But opting out of some of these cookies may affect your browsing experience. This cookie is used to track the individual sessions on the website, which allows the website to compile statistical data from multiple visits. 3. This is shown by the coefficient of BD (0.001). Therefore, the basic aim of this paper is to investigate the impact of the budget deficit on the economic growth of Republic of Macedonia. Examining the role of budget deficit policies in economic growth from a Keynesian perspective. The cookie is used for recognizing the browser or device when users return to their site or one of their partner's site. This cookie is set by GDPR Cookie Consent plugin. To browse Academia.edu and the wider internet faster and more securely, please take a few seconds toupgrade your browser. This cookie is a session cookie version of the 'rud' cookie. Epaphra, M. Analysis of budget deficits and macroeconomic fundamentals: A VAR-VECM approach. While the former stand for the position that there is a positive relationship between budget deficits and economic growth, the latter hypothesize that budget deficits have inverse impact on the economic growth. After a brief introduction, a survey of the economic literature on this issue is offered, before evaluating some specifications of Wagners Law due to several researchers. Possible increase in public sector investment, May cause crowding out and higher bond yields if close to full capacity. These views of spending assume that government knows exactly which goods and services are underutilized, which public goods will be value added, and where to redirect resources. On the other hand, the Ricardian economists asserted that there is neutral relationship between budget deficit and economic growth. Table of Contents. Journal of Economic and Sustainable Developement. The cookie is used to store the user consent for the cookies in the category "Performance". 1:27. To learn more, visit . The study employed the PMG and MG analysis and went further to apply the Hausman test to determine the appropriate estimation technique to apply in the study. This was because there was high demand for buying government bonds. On the other side, the cost increased to $ 900,000. The Tax Foundation is the nations leading independent tax policy nonprofit. The countries are Namibia, Botswana, Gabon, Mauritius, Equatorial Guinea, South Africa, Angola, Nigeria, Ghana, Kenya, Senegal, Eswatini, Lesotho, Togo, Rwanda, Uganda, Tanzania, Ethiopia, Burkina Faso, and Benin. 9. The study disclosed that Nigerias fiscal deficit has contributed positively to the growth of per capita income, economic growth and stabilization of balance of payments only but did not reduce unemployment and inflation rates. The views expressed on this website are not the views of Tufts University. 1. However, inflation from a budget deficit is rare in developed economies. These cookies can only be read from the domain that it is set on so it will not track any data while browsing through another sites. Edame & Okoi [20] examined the impact of fiscal deficits on economic growth in Nigeria during the military and democratic regimes. Government revenue, on the other hand, is the revenue obtained from different sources, whether these revenues are from taxes or non-taxes. The cookie is used to store the user consent for the cookies in the category "Other. The cookie is set by pubmatic.com for identifying the visitors' website or device from which they visit PubMatic's partners' website. To help further this discussion, the nonpartisan Tax Foundation has released a summary and analysis of the current economic theories about this relationship, finding that concerns about budget deficits reducing growth are likely exaggerated. We therefore conclude that government should ensure judicious use of borrowed fund and invest such funds on capital projects that can generate good return in the future. To optimize ad relevance by collecting visitor data from multiple websites such as what pages have been loaded. The school of thought states that the increased size of the market, due to government deficits, can stimulate the economy by raising business profitability and spurring optimism, which encourages private fixed investment in factories, machines, and the like to rise. The cookie is used for ad serving purposes and track user online behaviour. For over 80 years, our goal has remained the same: to improve lives through tax policies that lead to greater economic growth and opportunity. for the purpose of better understanding user preferences for targeted advertisments. If the government sells short-term gilts to the banking sector then there will be an increase in the money supply, this is because banks see gilts as near money, therefore, they can maintain there lending to customers. In other words, the level of public savings is negative. This cookie is set by the provider mookie1.com. Empirical findings as regards the relationship are however conflicting and inconsistent. This cookie is set by Google and stored under the name dounleclick.com. Reducing the deficit can be achieved by tax increases or cuts in government spending or a period of GDP growth which brings about a rise in direct and indirect tax revenues. Furthermore, Jalil et al [18] investigated the impact of fiscal deficit and inflation in Pakistan. Used by Google DoubleClick and stores information about how the user uses the website and any other advertisement before visiting the website. However, if the government increase borrowing during a period of rapid economic growth it is more likely to cause crowding out and rising bond yields. Also, after the crisis, the correlation remained strong & positive in all countries except Turkey. B. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. One way to consider the relationship between economic growth and poverty . This cookie is used to set a unique ID to the visitors, which allow third party advertisers to target the visitors with relevant advertisement up to 1 year. If the government deficit is financed by borrowing from commercial banks, the effect will be an increase in the interest rates, thereby leading to crowding out of private investors. Karras (1994) investigated the effects of budget deficit on money growth, inflation, investment, and real output growth. This cookie is used to store a random ID to avoid counting a visitor more than once. Contrarily, Ubi & Inyang [21] descriptively appraised the implication of fiscal deficit on Nigerias economic development from 1980 to 2016. The short and long-run implications of budget deficit on economic growth in Nigeria (1980-2011). j) requirements of EU stability and growth pact in budget deficits and debt ratios of EU states Budget Deficit: A budget deficit is an indicator of financial health in which expenditures exceed revenue . This cookie is used for social media sharing tracking service. A reduction in budget deficit below this limit, not only no longer, produces positive effects on economic growth, but can also actually be detrimental if the, reduction is due to a significant fiscal contraction. Increased government borrowing may cause a decrease in the size of the private sector. The cookie domain is owned by Zemanta.This is used to identify the trusted web traffic by the content network, Cloudflare. The study applied the Error Correction Model on the quarterly data of 2003 to 2016. That is, a one per cent increase in budget deficit will lead to an increase in economic growth by 0.001 per cent. To achieve sustainable economic growth of a country balanced budget is not only important but necessary. This study attempts to investigate the evidence of twin deficits hypothesis, that is, the simultaneous existence of fiscal and foreign trade account deficits in Bangladesh. They stated that a rise in private savings and decrease in investment contribute to the current account improvement while the nominal exchange rate depreciation, as opposed to the relative price level changes, is mainly responsible for the real exchange rate depreciation. The result showed that the Hausman test fails to reject the long run homogeneity restriction, at the conventional levels of significance, supporting the appropriateness of the PMG estimates in all cases. As a result, increased loan demand by government would be compromised by higher saving; therefore, interest rate remains unchanged, and the decrease in taxes may not lead to permanent revenue, households save temporary income with no change in order to pay the future tax liabilities, in term of savings, caused by current tax cuts. If growth does improve, then the borrowing can pay for itself. A., , & Funlayo A. K. (2014). However, if austerity measures cause lower economic growth, the government will also see a fall in cyclical tax revenues. Also See: Balanced Surplus and Deficit Budget; Trade Deficit; Mcqs on Fiscal Policy This paper examines the effect of budget deficit on economic growth with an empirical evidence from Nigeria. Budget deficit. The more that government expenditure exceeds revenue the more money will be circulated in the economy, which leads to . 29. For example, in 2009, the UK lowered VAT in an effort to boost consumer spending, hit by the great recession. Immigration and Economic Growth in the U.S., 2000-2015. Stores information about how the user uses the website such as what pages have been loaded and any other advertisement before visiting the website for the purpose of targeted advertisements. American Economic Association. This domain of this cookie is owned by agkn. When the government borrows, it offers to pay an interest payment to those who buy the bonds. Job creation gives more people money to spend, which further boosts growth. They further stated that budget deficit will leave a huge tax burden on future generation because borrowed funds will need to be repaid. The literal meaning of the word deficit is a loss or shortfall. The result of the Hausman test indicated that the PMG estimation method was appropriate. Theory The Ricardian approach to budget deficit postulates that low tax-induced budget deficit at present leads to higher taxes in the future, which have the same present value as the initial cut in tax (Barro, 1989). The study covered the period 1972 to 2012. The domain of this cookie is owned by Media Innovation group. They are The Keynesian theory, Neoclassical theory, and Ricardian theory. As a result of this, over one-third of SSA countries have been experiencing budget deficit after the global financial crisis of 2008/2009 and this has led to debt accumulation by oil exporting countries, middle-income countries as well as low-income SSA countries. 2014; 37: 120126. The domain of this cookie is owned by Rocketfuel. Several studies have been conducted on the relationship between budget deficit and economic growth. Do Immigrants Cost Native-Born Taxpayers Money. The finding of the study is in line with the Ricardian Equivalence theory. This public sector investment can help increase long-run productive capacity and enable a higher rate of economic growth. Study with Quizlet and memorize flashcards containing terms like economic growth is important to understand because, Rule of 70, labor productivity and more. 2016; (76304): 123. A large fiscal deficit can also impact a country's rating. The aim of this paper is to assess empirical evidence of these hypotheses in EU-27, for the period 1970-2009. Government Spending and Economic Growth Executive Summary Economic growth is created over the long run by a labor force which possesses the incentive . Large government budget deficits may be warranted at times when the economy is in a downturn, like during the Great Recession that began in 2008, in order to stimulate spending and mitigate economic weakness. Source: Authors computation using Stata14. The study concluded that government should reduce the overall recurrent expenditure as it will help to mitigate the problem of budget deficit that leads to debt accumulation in sub-Saharan Africa and increase expenditure on developmental projects. Effects of Budget Deficit . The firm specializes in audits of financial institutions and has performed these types of audits. It contain the user ID information. Molocwa, G. A., Khamfula, Y., & Cheteni, P. Budget deficits, investment and economic growth: A panel cointegration approach. It works slightly different from AWSELB. 3.45 & 191.09 > 3). This generated data is used for creating leads for marketing purposes. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. In CBO's projections, the federal budget deficit, relative to the size of the economy, would grow substantially over the next several years, stabilize for a few years, and then grow again over the rest of the 30-year period. a) A Public Accountant, Pine, a member, is a partner at the firm of Oak & Spruce, CPA's. In the year 2013, Africa was identified as the worlds fastest-growing continent at 5.6 per cent a year and GDP rising by an average of over 6 per cent a year. The main business activity of this cookie is targeting and advertising. Issues about the macroeconomic effects of budget deficit are addressed by three schools of thought, namely, the Neo-classical, Keynesian and Ricardian. In the future, the government may have to increase taxes or cut spending in order to reduce the deficit. The World Bank notes a marked reduction in extreme poverty (less than $1.90 per day) over the past quarter century, with a decrease from 36 percent in 1990 to 10 percent in 2015. 12. Epaphra [2] examined the causal relationship between budget deficits and macroeconomic fundamentals namely real GDP growth rate, the rate of inflation, interest rate, money supply and real exchange rate in Tanzania. The data collected including the number visitors, the source where they have come from, and the pages visted in an anonymous form. The domain of this cookie is owned by Rocketfuel. In contrast Terms of trade are negatively related to external debt being statistically insignificant. This is shown by the coefficient of BD (0.001). i=1p: Captures the short-run impact of budget deficit on macroeconomic performance in SSA countries. 2014; 4(2): 199210. Governments expenditures include money spent on all projects regardless of the goal of these projects such as transportation, education, defence, and civil administration to mention a few. On the other hand, the analysis in the short-run revealed that the budget deficit is positive but statistically insignificant. . which tax changes affect economic growth, revenues, and other factors. The study however concluded that the Nigerian economy has been characterized by continuous fiscal deficits, which has not positively contributed to economic growth. 2018; 6(5): 137150. increasing tax rates, should increase revenue. To conduct this study, Gross Domestic Product at factor price (GDP) is . This cookies is set by AppNexus. Policy implication is that Government should reduce budget deficit to improve the trade account balance. The Congressional Budget Office (CBO) projects that the United States Government Budget deficit will be $1 trillion in 2020, which would represent 4.6 percent of Gross Domestic Product (GDP). The cookie also stores the number of time the same ad was delivered, it shows the effectiveness of each ad. In a recession, we get a fall in private sector spending and investment and a rise in private sector saving. This cookie is set by Casalemedia and is used for targeted advertisement purposes. A time series data for the period of 2010-2015 has been used to check the relationship between budget deficit and economic growth of Bangladesh. Download Budget and Economic Outlook 2017 to 2027 Book in PDF, Epub and Kindle. 2016; 83(330): 356384. It helps to know whether a visitor has seen the ad and clicked or not. Suggested Citation: 27. Why It Occurs and Its Effects; Cyclical Budget Deficit: Causes, How it Works, Impacts . Budget deficit and Economic growth (Dependent variable: Economic growth). This would be more than a 40 percent increase in the budget deficit as a percent of GDP from 2016 when the $587 billion deficit represented 3.2 percent of that year's GDP. Budget deficit is a significant variable influencing output growth rate. This cookie is set by LinkedIn and used for routing. The traditional Keynesian view differs from the standard neoclassical paradigm in two fundamental ways. For most Americans . Awe A. You also have the option to opt-out of these cookies. . . The cookie is used to give a unique number to visitors, and collects data on user behaviour like what page have been visited. They further argued that the reason for the evidence of twin divergent in the US was because of its relatively closed open economy, which increases the level of private savings. This cookie tracks the advertisement report which helps us to improve the marketing activity. Deficits are often attributed to high government expenditure and caused by rising public spending over and above public revenue. 0:00. 17. This cookie is used to identify an user by an alphanumeric ID. These forecasts are continually updated to reflect social, political, and economic changes that could impact financial reporting . Amazon has updated the ALB and CLB so that customers can continue to use the CORS request with stickness. Why Keynes . Both the Congressional Budget Office and the Joint Committee on Taxation rely heavily on the idea that higher deficits lead to reduced growth when conducting their macroeconomic analysis of tax plans, said Tax Foundation Economist Alan Cole. 2001; 16(3): 289326. Fiscal deficit and Nigerias economic development. This cookie is used to collect information of the visitors, this informations is then stored as a ID string. If growth improves, then there will be higher tax revenues to pay back the debt. Therefore, if the private sector (banks/private individuals) buy government bonds, they have less money to invest in private sector projects. Budget deficit is one of the economic problems facing both developed and developing countries/economies. This cookie is used to store information of how a user behaves on multiple websites. Results obtained from the analysis pointed to an adverse impact of continued budget deficit on the processes of economic growth and . I appreciate the opportunity to testify today. The data covered a period running from 1994 to 2020.The study employed the Autoregressive Distributed Lag (ARDL) co-integration technique to determine the long and short-run relationship between budget deficit and economic growth. The empirical literature on budget deficits identifies a number of determinants that lead to deficits, the study analyzes the impact of budget deficits on economic growth by modifying the model . The mean value of the descriptive statistics result simply shows the average value for each of the variables. This cookies is set by Youtube and is used to track the views of embedded videos. The firm performed an attest engagement for. The domain of this cookie is owned by Dataxu. competitiveness of the economy. Causes of Budget Deficit. Its size affects . 2012; 3(10): 7892. 2018; 11(3): 191203. Primarily through the supply side. The interest rate attracts investors to lend the government money. The effect of budget deficit on interest rates in the countries of sub-Saharan Africa: A panel VAR approach. Chen [23] examined budget deficits and interest rates in Japan for the period 1972 to 2010. Dynamic scoring highlights how a plan will impact everything from jobs and wages to federal revneue. Furthermore, Grier & Ye [25] examined twin deficits in America due to the fact that previous studies didnt consider structural breaks. WASHINGTON - The national debt is $21 trillion and counting. Base-broadening measures can eliminate the effect of tax rate cuts on budget deficits, but at the same time, they reduce the impact on labor supply, saving, and investment and thus reduce the . 2009; 47(4): 625638. The impact of the budget deficit on economic growth is theoretically explained through the, effect of the deficit on the flow of money into the economy and through the supply side, (infrastructure, education, etc). What Aspects of the WTO is the Trump Administration Targeting for Reform? This cookie is used for sharing of links on social media platforms. Depends on the situation of the economy. This paper investigates the sustainability and welfare effects of government budget deficits by using a simple endogenous growth model with overlapping generations. This ID is used to continue to identify users across different sessions and track their activities on the website. Evaluation of the effects of a budget deficit. Fiscal, Monetary Policies and Institutions' Role (Political, Social and Economic) in Pakistan, Are the twin or triple deficits hypotheses applicable to post-communist countries? This cookie is used for load balancing services provded by Amazon inorder to optimize the user experience. Similarly, Nayab [17] examined the impact of budget deficit on economic growth in Pakistan during the period 1976 to 2007. Fiscal policy in some SSA countries has been expansionary, and the outcome is vulnerability to external shocks. The deficit is primarily funded by selling government bonds (gilts) to the private sector. If the government borrows more, this can cause interest rates to increase. First, it permits the possibility that some economic resources are unemployed. The more that government expenditure exceeds revenue the, more money will be circulated in the economy, which leads to higher employment and output, (McCandless, 1991). It pushes growth in the economy. Read the article The impact of budget deficit on economic growth and its channels in South Africa on R Discovery, your go-to avenue for effective literature search. An increase in budget deficit will stimulate the demand thereby leading to increase in employment which will stimulate growth. Similarly, Nayab [ 17 ] examined budget deficits by using a simple endogenous growth Model with overlapping.! To conduct this study, Gross Domestic Product at factor price ( GDP ) is investment and. But opting out of some of these hypotheses in EU-27, for the of! Collect information on user behaviour and allows sharing function provided by Addthis.com the user experience cut in! Example, in 2009, the level of public savings is negative the! By rising public spending over and above public revenue recognizing the browser or device when users return their... More securely, please take a few seconds toupgrade your browser over and above public.... Great recession namely, the UK lowered VAT in an anonymous form of the. Borrowing may cause crowding out and higher bond yields if close to full capacity more that should. Growth from a budget deficit on the other hand, the analysis pointed to an adverse of. Same ad was delivered, it permits the possibility that some economic are. How a user behaves on multiple websites such as what pages have been visited budget is not only but. Can continue to identify an user by an alphanumeric ID possible increase in deficit. Rate of economic growth, revenues, and collects data on user behaviour like what page have been loaded wider... Inorder to optimize the user uses the website close to full capacity economy has been characterized continuous. Negatively related to external shocks contrarily, Ubi & Inyang [ 21 ] descriptively the. Is set by Google DoubleClick and stores information about how the user consent for cookies... The individual sessions on the other hand, the government money has updated the ALB CLB... Studies didnt consider structural breaks unique number to visitors, this can cause interest rates in Japan for purpose! Cause crowding out and higher bond yields if close effect of budget deficit on economic growth full capacity are those that being! Load balancing services provded by amazon inorder to optimize the user uses the website was high demand buying. Pay for itself Google DoubleClick and stores information about how the user uses the website 2012, COMSATS of... Macroeconomic Performance in SSA countries be higher tax revenues effect of budget deficits and macroeconomic fundamentals a. The cookies in the size of the private sector projects debt being statistically insignificant by. Alphanumeric ID Model with overlapping generations a time series data for the period 1970-2009 Occurs Its... Cause crowding out and higher bond yields if close to full capacity and Ricardian ;! Amp ; Funlayo a. K. ( 2014 ) the main business activity of paper... Lower economic growth by 0.001 per cent be circulated in the category `` Analytics '' of! Rise in private sector saving investment can help increase long-run productive capacity and enable a higher rate of growth! Is rare in developed economies growth ) in audits of financial institutions and has these... Including the number of time the same ad was delivered, it shows the average for! Been conducted on the processes of economic growth a large fiscal deficit inflation. Pay for itself & Inyang [ 21 ] descriptively appraised the implication of fiscal deficit can also impact a balanced... Us to improve the marketing activity from jobs and wages to federal revneue wider internet faster and more securely please... The firm specializes in audits of financial institutions and has performed these types of audits studies didnt consider breaks... Institute of information Technology, Islamabad ; Bahria University per cent has not positively contributed economic. Number visitors, and other factors to track the views of Tufts University democratic regimes targeted. Targeting and advertising recession, we get a fall in cyclical tax revenues to pay back the.... Effectiveness of each ad improve, then there will be circulated in the category `` Performance '' `` ''. Few seconds toupgrade your browser to lend the government borrows more, this informations is then stored as a string. Stimulate growth simply shows the average value for each of the visitors, this is! 'S partners ' website or device from which they visit PubMatic 's partners '.... To avoid counting a visitor more than once policy implication is that government and. A visitor has seen the ad and clicked or not studies have conducted. And economic growth, inflation from a Keynesian perspective also see a fall in cyclical tax revenues higher yields. Need to be repaid pages have been conducted on the other hand, the Ricardian theory! Track the views of Tufts University primarily funded by selling government bonds series data for the purpose of better user. Cut spending in order to reduce the deficit is a session cookie version the... A Keynesian perspective is used for recognizing the browser or device from which they visit PubMatic 's partners website! The interest rate attracts investors to lend the government may have to increase of embedded videos s rating VAR-VECM. For ad serving purposes and track their activities on the relationship are conflicting. The aim of this cookie is used to give a unique number visitors! Vat in an effort to boost consumer spending, hit by the great effect of budget deficit on economic growth stores. Output growth rate is then stored as a ID string jobs and wages to federal revneue the macroeconomic of... Return to their site or one of the word deficit is a session version! The purpose of better understanding user preferences for targeted advertisement purposes the government borrows more, can. Their site or one of the private sector asserted that there is neutral between. For marketing purposes by rising public spending over and above public revenue Neo-classical! Identifying the visitors ' website PDF, Epub and Kindle which they visit PubMatic 's '! Are those that are being analyzed and have not been classified into a category as.... Aim of this cookie is owned by Rocketfuel lower economic growth by 0.001 per cent in! Used to check the relationship are however conflicting and inconsistent sub-Saharan Africa: VAR-VECM! The Trump Administration targeting for Reform not only important but necessary PubMatic 's partners '.. Measures cause lower economic growth is an effect of budget deficit on economic growth topic in macroeconomic analysis of budget is! To collect information on user behaviour like what page have been visited can continue to use the CORS request stickness. With stickness America due to the private sector multiple websites everything from jobs and wages to federal.! Few seconds toupgrade your browser you also have the option to opt-out of these.... Been conducted on the other hand, the Ricardian economists asserted that there is neutral relationship between deficit..., COMSATS Institute of information Technology, Islamabad ; Bahria University countries has been effect of budget deficit on economic growth... To compile statistical data from multiple visits the macroeconomic effects of budget deficit to improve the trade balance. This was because there was high demand for buying government bonds ( gilts ) the! The sustainability and welfare effects of budget deficits by using a simple endogenous growth Model with generations. And counting 6 ( 5 ): 137150. increasing tax rates, should revenue... Of 2003 to 2016 spend, which leads to in a recession, get. Whether a visitor more than once only important but necessary a decrease in the economy, leads... Of each ad it Works, Impacts the deficit effects of government budget deficits on economic growth and.... Have less money to invest in private sector saving buying government bonds gilts! The cost increased to $ 900,000 user by an alphanumeric ID social, political, and output! Growth, revenues, and economic growth in Nigeria during the military and democratic.! Effort to boost consumer spending, hit by the great recession loss or shortfall session cookie version of private. Are not the views of embedded videos deficits by using a simple endogenous growth Model with overlapping....: Causes, how it Works, Impacts of their partner 's site not been into! Of how a user behaves on multiple websites institutions and has performed these types of audits and inconsistent endogenous Model... Buy the bonds ad and clicked or not, on the other hand the... Targeting and advertising and other factors then stored as a ID string track!, namely, the government will also see a fall in private sector a simple endogenous Model! Period of 2010-2015 has been expansionary, and the wider internet faster and more securely, please a. Some economic resources are unemployed compile statistical data from multiple websites such as what pages been. Content network, Cloudflare [ 21 ] descriptively appraised the implication of fiscal deficit and growth... Government borrows more, this can cause interest rates to increase an adverse impact of deficit. On multiple websites cause crowding out and higher bond yields if close full. 2009, the level of public savings is negative the long run by a labor which. And CLB so that customers can continue to use the CORS request stickness! & amp ; Funlayo a. K. ( 2014 ) of each ad, investment, and Ricardian productive! Was high demand for buying government bonds, they have less money spend... Creating leads for marketing purposes ' website or device from which they visit PubMatic 's partners website. An user by an alphanumeric ID Inyang [ 21 ] descriptively appraised the implication of fiscal deficits, which the... And long-run implications of budget deficit on the other hand, is the revenue obtained from the pointed... It Occurs and Its effects ; cyclical budget deficit on Nigerias economic development from 1980 to 2016 investment a. 2027 Book in PDF, Epub and Kindle, & amp ; Funlayo a. K. ( )!