scholarly journals Fiscal Deficit, Financing Options and Macroeconomic Stability in Nigeria: A Disaggregated Approach

2017 ◽  
Vol 6 (2) ◽  
pp. 043-064
Author(s):  
Nnamdi Chinwendu Nwaeze ◽  
Keyword(s):  
Fiscal Deficit ◽  
Deficit Financing ◽  
Macroeconomic Stability

scholarly journals Republic of Armenia

2020 ◽  
Vol 20 (318) ◽  
Author(s):  
Keyword(s):  
Vulnerable Groups ◽  
Fiscal Deficit ◽  
Conflict Zone ◽  
Second Wave ◽  
Macroeconomic Stability

Armenia’s economy has been hit hard by twin shocks: the COVID-19 pandemic (now in its second wave), and the recent military hostilities involving the Nagorno- Karabakh conflict zone. Reflecting these shocks, growth is expected at -7¼ percent this year, with the fiscal deficit and debt rising considerably. Nonetheless, the authorities have responded promptly with healthcare and anti-crisis measures to limit the pandemic’s impact while protecting vulnerable groups and safeguarding macroeconomic stability.

scholarly journals Is the Fiscal Deficit of ASEAN Alarming? Evidence from Fiscal Deficit Consequences and Contribution towards Sustainable Economic Growth

2021 ◽  
Vol 13 (18) ◽  
pp. 10045
Author(s):  
Maran Marimuthu ◽  
Hanana Khan ◽  
Romana Bangash
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Current Account ◽  
Political Stability ◽  
Government Expenditures ◽  
Fiscal Deficit ◽  
Deficit Financing ◽  
Outstanding Debt ◽  
Sustainable Economic Growth ◽  
The Impact

The Association of Southeast Asian Nations (ASEAN) has faced a persistent fiscal deficit for the last three decades. In the vast literature, a question is still arising: is ASEAN’s fiscal deficit alarming? This study explores the fiscal deficit with different perspectives to provide guidelines for policymakers to answer this question. For this purpose, we offer fiscal causal hypotheses estimates, including the contribution of Government expenditures (GEs) and Government revenues (GRs) towards sustainable economic growth; we then evaluated two additional deficit hypotheses, the impact of fiscal deficit and deficit financing on inflation. This empirical analysis covered annual financial data for the years 1990 to 2019 of ten member countries of ASEAN by applying panel econometric techniques, which include unit root Levin, Lin, and Chu (LLC) and Im, Pesaran, and Shin (IPS) tests; the panel autoregressive distributed lag (ARDL) model for cointegration; and the Dumitrescu–Hurlin (DH) test for causality. The findings revealed that government expenditures contribute more towards sustainable economic growth while government revenues are inversely related to growth in the long run. The DH causality test supported the fiscal synchronization hypothesis and current account targeting hypothesis in ASEAN. The interest rate is found as a moderator between fiscal and current account deficits. Furthermore, the findings showed that the fiscal deficit of ASEAN could generate inflation while relying on outstanding debt. Overall, our findings concluded that the fiscal deficit of ASEAN is alarming based on the behavior of government revenues, interest rate dynamics, political stability, and outstanding debt in deficit financing.

scholarly journals Sources to Finance Fiscal Deficit and Their Impact on Inflation: A Case Study of Pakistan

2019 ◽  
Vol 58 (1) ◽  
pp. 27-43 ◽  
Author(s):  
Kashif Ali ◽  
Mahmood Khalid
Keyword(s):  
Central Bank ◽  
Jel Classification ◽  
Fiscal Deficit ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Long Run ◽  
Deficit Financing ◽  
Lag Model ◽  
State And Local ◽  
External Borrowing

Theoretically, fiscal deficit is inflationary but the sources of financing fiscal deficit may differ in terms of their impact on inflation. Question arises that what should be the least inflation cost source of financing? This study attempts to answer this question and explore the long run relationship among the sources to finance fiscal deficit and inflation. In so doing, the estimations have been done in four stages on the basis of categorisation of the deficit financing heads. In the first stage it has been tested that fiscal deficit along with money supply are inflationary. In the second stage fiscal deficit is bifurcated into two components, domestic borrowing and external borrowing for fiscal deficit. In the third stage, domestic borrowing is further divided into two heads, bank and non-bank borrowing. While in the fourth and last stage, bank borrowing is further categorised into two parts, borrowing from scheduled banks and central bank, and non-bank borrowing which comprises borrowing from National Saving Scheme for budgetary support. The Johansen Cointegration Technique is used for the first stage of estimation, while Auto Regressive Distributed Lag Model is employed for the rest of the three stages. The study finds that there is a long run relationship among sources of financing fiscal deficit and inflation. Inflation is positively affected by domestic borrowing, bank borrowing and borrowing from central bank, while central bank borrowing is more inflationary in nature. Consequently, fiscal deficit should be financed through external sources, non-bank and scheduled bank borrowings. JEL Classification: H62, H74, E31 Keywords: Deficit, State and Local Borrowing, Inflation

scholarly journals An Analysis of Trend and Sources of Deficit Financing in Nepal

2016 ◽  
Vol 12 ◽  
pp. 8
Author(s):  
Deo Narayan Sutihar
Keyword(s):  
Budget Deficit ◽  
Government Expenditure ◽  
Fiscal Deficit ◽  
Cash Balance ◽  
Foreign Loan ◽  
Deficit Financing ◽  
Error Terms ◽  
Level Of Significance ◽  
Near Future ◽  
Very High

<p>Deficit financing has emerged as an important tool of financing government expenditure. In Nepal, the share of fiscal deficit to GDP ratio was 5.5% in FY 2010/11 in compare to 3.6% of FY 2000/01. There are three sources of deficit financing i.e. foreign loan, domestic borrowing and cash balance and their shares to fiscal deficit have found 24.3%, 85.7% and -10.0% respectively in FY 2010/11. The domestic borrowing to budget deficit was found to be very high. The fiscal deficit to expenditure ratio was maximum 30.3% in FY 2000/01 and minimum 16.8% in FY 2010/11 respectively. This exhibits that there was decreasing trend in ratio in the study period. The regression equation has been used to estimate the annual declining rate of fiscal deficit to expenditure ratio. The estimates of the annual average and annual declining rate of deficit/expenditure ratio have been found to be 26.64% and - 0.846% respectively. From the result, it is obvious that fiscal deficit/expenditure ratio has been decreased by 0.846 % annually during the period of 11 years. This trend exhibits that Nepal will try to announce balanced budget in the near future. From the statistical analysis, the value of autocorrelation is found to be 0.427 and its d-statistic has been estimated 1.003, which not significant at 5% level of significance. Thus, the analysis justifies that there is no positive autocorrelation among error terms in the study period.</p><p>Economic Literature Vol.12 2014: 8-15</p>

scholarly journals INFLUENCE OF MACROECONOMIC STABILITY ON FINANCIAL DEVELOPMENT IN DEVELOPING ECONOMIES: EVIDENCE FROM WEST AFRICAN REGION

2019 ◽  
Vol 65 (04) ◽  
pp. 837-856 ◽  
Author(s):  
KIZITO UYI EHIGIAMUSOE ◽  
HOOI HOOI LEAN ◽  
JIN HOOI CHAN
Keyword(s):  
Exchange Rate ◽  
Financial Development ◽  
Real Interest Rate ◽  
Inflation Rate ◽  
Developing Economies ◽  
West African ◽  
Fiscal Deficit ◽  
African Region ◽  
West African Region ◽  
Macroeconomic Stability

This paper examines the effects of macroeconomic stability on financial development in the West African region. Macroeconomic stability is measured based on five Maastricht Criteria’s variables namely inflation rate, real exchange rate, government debt, fiscal deficit and real interest rate. The study employs dynamic models on the panel data. We find that macroeconomic stability has significant effects on financial development in the region. Specifically, inflation rate, real exchange rate and fiscal deficit have negative effects, while the effects of government debt and real interest rate are positive. The implication of this study is that macroeconomic stability variables are determinants of financial development. Hence, developing economies should strive to achieve macroeconomic stability in order to drive financial development, with a view to achieving sustainable economic development.

scholarly journals Persistence of fiscal deficits in Nigeria: examining the issues

2019 ◽  
Vol 16 (4) ◽  
pp. 98-109 ◽  
Author(s):  
Lawrence Uchenna Okoye ◽  
Alexander Ehimare Omankhanlen ◽  
Uchechukwu Emena Okorie ◽  
Johnson I. Okoh ◽  
Ado Ahmed
Keyword(s):  
Exchange Rate ◽  
Growth And Development ◽  
Economic Consequences ◽  
Fiscal Deficit ◽  
Fiscal Deficits ◽  
Development Indicators ◽  
Distributed Lag ◽  
Oil Revenue ◽  
Macroeconomic Indicators ◽  
Deficit Financing

Due to a huge financing gap in many developing nations, governments use budget deficit to facilitate growth and development. However, deficit financing deepens the economic woes of these economies, leaving them in a vicious cycle of deficits. In Nigeria, for instance, fiscal deficits cause country’s bad performance and ranking both in global growth and development indicators. Thus, the use of fiscal deficit to enhance economic performance has proved to be futile and also has left bad economic consequences. Based on the econometric method of Autoregressive Distributed Lag, this study examines how selected macroeconomic indicators influence fiscal deficits in the budgetary policy of Nigeria. Historical data between 1981 and 2017 were used for the study. The study shows a significant positive effect of inflation, oil revenue, and lagged exchange rate on fiscal deficits. There is also evidence that external debt and current exchange rate decrease the level of fiscal deficits. However, the research did not prove robust evidence of fiscal deficit persistence. Government policy should target low level of inflation and exchange rate appreciation as well as the productive investment of oil revenues and economic diversification as the panacea for persistent use of fiscal deficits.

Problems Of Investment Attractiveness In The Economy Of Uzbekistan

GIS Business ◽  
2020 ◽  
Vol 15 (1) ◽  
pp. 241-245
Author(s):  
Khamrakulova O.D. ◽  
Bektemirov A.B.
Keyword(s):  
Economic Growth ◽  
Development Strategy ◽  
Private Property ◽  
Economic Reforms ◽  
The State ◽  
Structural Reforms ◽  
The Development Strategy ◽  
Macroeconomic Stability

The deepening of economic reforms in Uzbekistan is closely linked to the strengthening of macroeconomic stability and the maintenance of high rates of economic growth and competitiveness, the continuation of institutional and structural reforms to reduce the presence of the State in the economy, and the further strengthening of the protection of rights and the priority role of private property, as reflected in the Development Strategy for 2017-2021.

WAYS TO OVERCOME THE PROBLEMS OF INSOLVENCY IN THE CONDITIONS OF CURRENT GLOBAL ECONOMIC CRISIS

2020 ◽  
Vol 5 (3) ◽  
pp. 81-86
Author(s):  
Ilxom Sayfiddinov ◽  
Keyword(s):  
Economic Crisis ◽  
National Economy ◽  
Investment Environment ◽  
Global Economic Crisis ◽  
Macroeconomic Stability

The article discusses the ways to overcome the problem of insolvency in the current global economic crisis. It also discusses in detail the ways to overcome the problem of insolvency. Opinions and conclusions were formed on insolvency, macroeconomic stability, competitiveness of the national economy, investment environment, strengthening of payment discipline

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