- The Complete Research Material is averagely 51 pages long and it is in Ms Word Format, it has 1-5 Chapters.
- Major Attributes are Abstract, All Chapters, Figures, Appendix, References.
- Study Level: BTech, BSc, BEng, BA, HND, ND or NCE.
- Full Access Fee: ₦6,000
Get the complete project »
ABSTRACT
This work is based on the appraisal of budget deficit and current account balance in the Nigeria economy between the periods of 1986-2010. The broad objectives of the study isto examine the impact of budget deficit and current account balance in the Nigeria economy, trend of budget deficit and current account balance and also the impact of selected macroeconomic variables on the current account. The potency of budget deficit in improving current account balance in Nigeria need to be emphasized upon by policy makers with caution.The ordinary least square (OLS) technique was adopted for the evaluation of data obtained and the researcher used PC-GIVE 8.00 software package. The result of the study shows that government expenditure on education has a positive impact on budget deficit while unemployment and government expenditure on health has negative impact on budget deficit, based on this finding, recommendations were made to enhance proper policy intervention by government and policy makers.
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Budgeting generally can be said to be a control device in an
organisation designed to ensure that activities pursued within the
budget period are such that contribute to the achievement of the
organisation’s objectives. For government, its objectives are the
provision of services and improvement of the living standard of the
people.
Budget deficit is one of the most discussed economic issues
in Nigeria. Baiter (1985) states that deficit are bad, always and
everywhere, regardless of the country circumstance. There is a common
believe among economist, that budget deficit priori harmful for the
total function of economy.
The budget deficit arises when a
government outlays exceed revenue for that fiscal year. In an attempt to
reduce large budget deficit, government usually recourse to deficit
financing namely;
i) internal and external borrowing ii) raising the
level of taxation iii)increasing money supply iv)Draw down from
government saving or what is called foreign reserve A deficit is
financed from government borrowing which may result to
accumulated
debt burden or a debt overhang situation. Inflation may result from
increased money used to finance the deficit. There would be a decrease
in disposable income of the consumers if the deficit is financed by
raising the level of taxation,it could affect economic behaviour by
changing the financial rewards to various activities. Budget deficit is a
fiscal instrument used by government to affect increase in aggregate
demand during depression. Budget deficit has its theoretical background
from the proposition made by Keynes in the 1930s during the event of the
great depression;Keynes’s advocate increased government spending as a
panacea to the world economy.
Current account balance is the sum of
net export goods and services, net income and net current transfers.
Current account balance consists of transactions relation to trade in
goods and services and unilateral transfers. Secondly, current account
balance is the different between the total receipts from export ofgoods
and services and grants of transfer payment abroad. Current account
balance tells us if a country has a deficit or supplies budget.
The
current account is in surplus when absorption is less than income and in
deficit when absorption exceeds income. Government expenditure is an
important component of aggregate demand. An increase in government
outlay
that is not met the available revenue usually trigger a series of
development in the economy due to the budget deficit. As in the case of
budget deficit, there are also some negative effects on the current
account balance; when a country experiences deficit, its deficit will
cause increase in imports of goods and services and also affect
adversely the domestic industry and this indirect effect on employment
and income in the country. A striking feature of Nigeria’s fiscal
operation since the second halve of the 1970s is persistent and rising
budget deficits. Nigeria has recorded deficit and current account
balance thereby experienced twin deficit. From the 2008 annual report of
the Central bank of Nigeria (CBN), article 5.3 page71, it states that
there was a notional deficit of 47.4 billion Naira or 0.2% of GDP
compared with the deficit of 117.2 billion naira or 0.6 GDP in 2007.
Evidences suggests that government deficit, notably in last 15 years has
been financed largely through money creation by the central bank.
Consequently, monetary policy has been vastly expansionary with direct
implication for price inflation and exchange rate. Finding from various
comprehensive studies have generally indicated that country
withsuccessful trade reforms tend to pursue tight monetary and fiscal
policies.
1.2 STATEMENT OF THE PROBLEM
The budget deficit and current account balance position in Nigeria has recorded more deficit in her budget over the years and also the current account balance has an unhealthy growth rate even to recording deficit in some of the years. Most importantly, the successive governments in Nigeria have devised many strategies and means to control the unhealthy rise in the budget deficit and improve current account balance such as in year 2009, there were initiative to spend less on salaries, the establishment of monitoring committee who would inspect project and further confirm proper utilization of funds before disbursement and strict orders that disbursement should be made based on proper utilization of previous ones and so on. Despite these measures, the budget deficit continue to be on the increase and current account balance keeps fluctuating.
RESEARCH QUESTIONS
The following research question will guide the study.
1.) Is there any relationship between budget deficit and current account balance in Nigeria?
2.) What are the causes of budget deficit and fluctuating current balance in Nigeria?
3.)
What is the contribution of budget deficit to current account in
Nigeria following Keynesian argument that demand and productivity”?
4.) What are the measures to control budget deficit and improve current account balance in Nigeria.
1.3 OBJECTIVES OF THE STUDY
The broad objective of this study is to investigate the budget
deficit and current account balance in Nigeria and how it affects the
economy. Specifically the objectives are
i.) To empirically investigate the relationship between budget deficit and current account in Nigeria.
Ii.)To investigate the causes of budget deficit and fluctuating accounting balance in Nigeria.
Iii.)To identify the various measures necessary to control budget deficit and improve current account balance in Nigeria.
1.4 RESEARCH HYPOTHESIS
Research hypothesis is proposition stated in a testable form to
predict particular relationships between two or more variables.
Hypothesis of this research are stated in both null and alternative
form.
The hypothesis formulated for the analysis of this study and
from which to draw relevant conclusion are 1.) Ho: Current account
balance has no effect on budget deficit in Nigeria
1.5 SIGNIFICANCE OF THE STUDY
This study is relevant since that it will inform the policy makers in
Nigeria the nature of the relationship between government budget
deficit and economic growth where in no small measure will aid in
appropriate fiscal policy measure.
The research work will provide
insight to the policy makers in making policies that is related to
budget deficit and current account balance in the entire economy.`
Further
more it will contribute immensely in developing the the analysis of
budget deficit on macroeconomic variables and serve as useful platform
tool in policy making.
The study will be useful to future researchers who might be working on the topic or other related topics.
1.6 SCOPE/LIMITATION OF THE STUDY
This research work will cover the period of 1987 to 2010 following
the limited scope of this research work, data will be sourced from
secondary data.
The limited scope of this research work is
necessitated by the changes posed by the problem of limited time frame
stipulated for this research work, shortage of fund and high cost
involvement in sourcing data on some of the variables required as a
result of problem of limited statistical materials. Effort will be made
to find out the relationship of budget deficit and current account
balance within this period. Despite all this impediments, this research
work will be relevant in serving the purpose of which is intended.
You either get what you want or your money back. T&C Apply
You can find more project topics easily, just search
-
SIMILAR ECONOMICS FINAL YEAR PROJECT RESEARCH TOPICS
-
1. THE IMPACT OF INTERNALLY GENERATED REVENUE (IGR) ON OUTPUT IN KWARA STATE (1988-2017)
» ABSTRACT This study examine the impact of internally generated revenue IGR) on economic output in Kwara State from 1988 to 2017. The data were however...Continue Reading »Item Type & Format: Project Material - Ms Word | 139 pages | Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
2. THE IMPACT OF HUMAN CAPITAL ON ECONOMIC GROWTH IN NIGERIA (1975-2015)
» ABSTRACT A nation cannot experience economic growth without human capital. And for human capital to actually have any impact on economic growth some i...Continue Reading »Item Type & Format: Project Material - Ms Word | 52 pages | Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
3. CONTRIBUTIONS OF INFORMAL SECTOR TO THE SOCIO-ECONOMIC DEVELOPMENT OF KADUNA NORTH LOCAL GOVERNMENT OF KADUNA STATE, NIGERIA
» CHAPTER ONE INTRODUCTION 1.1 Background to the study The informal sector covers a wide range of activities that originate from two reasons; According ...Continue Reading »Item Type & Format: Project Material - Ms Word | 52 pages | Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
4. ANALYSIS OF BUSINESS COMPETITIVENESS IN MANUFACTURING, FOOD AND BEVERAGES, AND ADVERTISING BUSINESSES IN KADUNA METROPOLIS AND ZARIA AREA
» Abstract This study evaluated business competitiveness in selected businesses in Kaduna metropolis and Zaria area using the Probit and Tobit regressio...Continue Reading »Item Type & Format: Project Material - Ms Word | 150 pages | Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
5. IMPACT OF EXTERNAL DEBT ON ECONOMIC GROWTH IN NIGERIA (1980-2016)
» CHAPTER ONE INTRODUCTION 1.1 Background of the Study Sustainable economic growth is a major concern for most developing countries (DCs) which are char...Continue Reading »Item Type & Format: Project Material - Ms Word | 71 pages | Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
6. MONETARY POLICY AND INFLATION IN NIGERIA ECONOMY (A CASE STUDY CENTRAL BANK OF NIGERIA (CBN) KADUNA)
» CHAPTER ONE 1.0 INTRODUCTION Monetary policy entails the government policies aimed at changing the quantity of money or credit condition. In every eco...Continue Reading »Item Type & Format: Project Material - Ms Word | 75 pages | Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
7. MOTIVATIONAL VARIABLES AND ACADEMIC PERFORMANCE IN ECONOMICS AMONG SECONDARY SCHOOLS STUDENTS
» Abstract This study was designed to examine the influence of motivational variables and academic performance in Economic among Secondary School Studen...Continue Reading »Item Type & Format: Project Material - Ms Word | 52 pages | Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
8. FISCAL POLICY AND PRIVATE INVESTMENT IN AFRICA: A TEST OF THE CROWDING-OUT HYPOTHESIS
» CHAPTER ONE INTRODUCTION 1.1 Background of the Study The economic problems of third world countries are not, in their totality, uniform. But their bas...Continue Reading »Item Type & Format: Project Material - Ms Word | 65 pages | Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
9. Attaining Nigeria MDGS: “A Case Study Of Poverty Reduction”
» ABSTRACT Poverty either as a plague or cause of other specific problems of under development afflicts Nigeria as it does to other Nations of the world...Continue Reading »Item Type & Format: Project Material - Ms Word | 15 pages | Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT
-
10. IMPACT OF COMMERCIAL BANKS ON SMALL AND MEDIUM SCALE ENTERPRISES DEVELOPMENT IN NIGERIA
» CHAPTER ONE INTRODUCTION 1.1 Background of the study Small and medium scaled businesses (SME) are businesses whose personnel numbers fall below certai...Continue Reading »Item Type & Format: Project Material - Ms Word | 52 pages | Instant Download | Chapter 1-5 | ECONOMICS DEPARTMENT