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BUDGET DEFICIT AND CURRENT ACCOUNT BALANCE IN NIGERIA (1986- 2010)

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ABSTRACT

This work is based on the appraisal of budget deficit and current account balance in the Nigeria economy between the periods of 19862010. 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 upon by policy makers with caution.The ordinary least square OLS technique was adopted for the evaluation of data obtained and the researcher used PCGIVE 8.00 software package. The result of the study shows that government expenditure on education has a positive impact on budget deficit while unemployment and government expenditure on health has negative impact on budget deficit, based on this finding, recommendations were made to enhance proper policy intervention by government and policy makers.

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