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Budget Deficit And Current Account Balance In Nigeria (1986- 2010)
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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. 1.4RESEARCH 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.
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ABSRACT - [ Total Page(s): 1 ]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 u ... Continue reading---
