scholarly journals Does Fiscal Deficit Stimulate Employment? Evidence from Nigeria’s Experience: VAR Approach

2017 ◽  
Vol 6 (3) ◽  
pp. 065-081
Author(s):  
Nnamdi Chinwendu Nwaeze ◽  
◽  
Ijeoma Eme Kalu ◽  
Steve Otonye Tamuno ◽  
◽  
...  
Keyword(s):  
Fiscal Deficit

Tracking the Transmission Channels of Fiscal Deficit and Food Inflation Linkages: A Structural VAR Approach

2020 ◽  
pp. 165-172
Keyword(s):  
Positive Impact ◽  
Structural Var ◽  
Fiscal Deficit ◽  
Agricultural Industry ◽  
Vector Autoregressive ◽  
Transmission Channels ◽  
Government Deficit ◽  
Import And Export ◽  
The Impact ◽  
Food Inflation

This empirical analysis aspired to unearth the transmission channels of fiscal deficit and food inflation linkages in the Indian perspective by reasonably exerting the data for 1991 to 2017. The precise results of structural vector autoregressive (SVAR) analysis proffered that there were three different mechanisms of transmission such as consumption, general inflation, and import channels that led to food inflation in response to the high fiscal deficit. The first channel revealed that government deficit spending had a positive impact on income which further led to food inflation through surging the household consumption expenditure. It was concluded that fiscal deficit passed through general inflation finally leading to a food price surge in the economy and seemed to work as cost-push inflation for the food and agricultural industry. The outcome also revealed that the impact of fiscal deficit passed to food inflation through external linkages such as import and export.

Is Expenditure by States for Development Compromised to Ensure Compliance of Fiscal Targets? A Study of Indian States

2020 ◽  
pp. 097674792096687
Author(s):  
H. K. Dwivedi ◽  
Sudip Kumar Sinha
Keyword(s):  
The State ◽  
Capital Account ◽  
General Category ◽  
Fiscal Deficit ◽  
Fiscal Consolidation ◽  
Indian States ◽  
Corrective Measures ◽  
Additional Amount ◽  
Three Phases

This article examines the interlinkage between fiscal consolidation targets and states’ developmental expenditure under capital account. While fiscal consolidation targets have enabled states to take corrective measures to reduce deficit under the revenue account, the effect of the same is studied on developmental expenditure under capital account. For analysis, the fiscal deficit and developmental expenditure under the capital account have been compared with the fiscal deficit targets and general category states’ average benchmarks for fiscal indicators for three phases (corresponding to the periods of three finance commissions). It is argued, that, while fiscal consolidation has helped to improve the state finances, the stringent fiscal targets have further reduced the developmental expenditure under capital account. In view of this, it is suggested that the states, which are historically stressed, should be allowed to borrow an additional amount of 0.25 per cent of GSDP each year over and above the existing limit, provided these states make efforts to reduce deficit under revenue account and spend the extra borrowings on developmental expenditure under capital account.

scholarly journals Fiscal Deficit and Its Impact on Economic Growth: Evidence from Bangladesh

Economies ◽  
2017 ◽  
Vol 5 (4) ◽  
pp. 37 ◽  
Author(s):  
Mohammed Hussain ◽  
Mahfuzul Haque
Keyword(s):  
Economic Growth ◽  
Fiscal Deficit

scholarly journals The Federal Democratic Republic of Ethiopia

2020 ◽  
Vol 20 (150) ◽  
Author(s):  
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Democratic Republic ◽  
Balance Of Payments ◽  
Vulnerable Groups ◽  
Fiscal Year ◽  
Fiscal Deficit ◽  
Economic Slowdown

Ethiopia is facing a pronounced economic slowdown and an urgent balance of payments need owing to the COVID-19 pandemic. The economy was growing robustly prior to the pandemic, and progress under the ECF-EFF arrangements was encouraging. The shock is expected to significantly reduce growth this fiscal year and next. It has already materially weakened external accounts as services exports, remittances, and foreign direct investment declined. The authorities are taking measures to combat the spread of the virus, mitigate its fallout, and support vulnerable groups. The fiscal deficit will have to expand temporarily to accommodate the additional spending.

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