An Analysis of the Relationship between Fiscal Deficits and Selected Macroeconomic Variables in Nigeria, 1970 – 2011

Abstract

Borrowing can also be from abroad consisting of other countries and multilateral institutions such as the IMF and the World Bank. The third source of financing deficit is through drawing from accumulated foreign exchange reserves. As part of the existence of persistent deficit spending is the issue of corruption which is perceived to inflate public expenditure and exacerbate annual budget deficit (Aliyu and Elijah 2008).