The Long and Short-Run Impact of Budget Deficit on Economic Growth

The government of the Federal Republic of Nigeria can regulate the levels of economic activity in the country by controlling the fiscal deficit such that it does not exceed a certain level or threshold that may result to economic instability in the country. The recent developments in the nation’s economy in the last decade calls for an urgent attention on the nation’s budgetary system. This book has comprehensively shown how budget deficit can have positive effects on the nation’s economy. The book carefully showed where fiscal deficits are necessary for correcting economic cycles in the country. Additionally analysis from the study expounded on the necessary steps to be taken in reducing fiscal deficits and ensure prudent management of national resources. The book presents a veritable tool in the hands of policymakers for the understanding of the long-term relationship between budget deficit [BD] and economic growth.