Effect Of Budget Deficits On The Nigerian Economy (2005 - 2014)

ABSTRACT

The research was undertaking to ascertain the effects of budget deficits in the Nigerian economy. Ex-post facto research design was adopted using secondary data extracted from the annual report of the CBN and statistical bulletin from 2005-2014. The study used the ordinary least square method of simple regression to analyze the research work and the variables were logged based on the fact that they are of different magnitudes. The study revealed that the estimated coefficient of the regression parameter has a positive sign which implies that there is very high relationship between budget deficits and the various dependent variables. It was recommended that the government should introduce Structural Adjustment Programme to adjust of the budget some of the budget made before approval, to minimize their external borrowing and stick to plan.