WAYS OF FINANCING DEFICIT BUDGET BY GOVERNMENT AND THEIR EFFECTS
The ways of financing deficit budget include the followings:
- By a country’s Bond: Budget deficits are financial by a country’s bonds. In some countries, it is financed by treasury bills, notes and bonds. This is the government’s way of printing money when more money is pumped into circulation, the supply outweighs the demand.
- Through public loans made by government: This is the second solution for financing the budget deficit. This is done in order to make up for supplementary expenditures not covered by current revenues.
f
BALANCED AND UNBALANCED BUDGET
PERFORMANCE OBJECTIVES
Explain the concepts of budget surplus balanced budget and the component of national debt.
Explain the concept of and criteria for revenue allocation (including resource control) in Nigeria and associated problems
Effects of financing deficit budgets
Increasing level of prices: The level of prices of goods and services tend to be on the increase as a result of excessive amount of money in circulation.
- It causes a decrease in the purchasing power of people: Budget deficit do cause a reduction in the real income or purchasing power of people.
- It causes inflation: The emergence of inflation is caused by too much money in circulation chasing few goods and services.
- It causes depreciation of currency: Too much money in circulation tends to cause depreciation or lower the value of that country’s currency.
- It leads to decrease in social and economic life of citizens: The combination of depreciation of currency and inflation generally lead to a decrease in the social and economic life of the people.
- It encourages importation of goods: Budget deficit is well known to discourage expert but rather it encourages the importation of goods from other countries.
- economic tools for nation building
- budgeting
- factors affecting the expansion of industries
- mineral resources and the mining industries
- demand and supply
- types of demand curve and used
- advertising industry
- factors of production
- entrepreneur
- joint stock company
- public enterprises
- private enterprises
- limited liability companies
- migration
- population
- market concept
- money market
- shares
- how companies raises funds for expansion
WEED AND THEIR BOTANICAL NAMES
1. ENVIRONMENTAL FACTORS AFFECTING AGRICULTURAL PRODUCTION
2. DISEASES
3. 52. SOIL MICRO-ORGANISMS
4. ORGANIC MANURING
5. FARM YARD MANURE
6. HUMUS
7. COMPOST
8. CROP ROTATION
9. GRAZING AND OVER GRAZING
10. IRRIGATION AND DRAINAGE
11. IRRIGATION SYSTEMS
12. ORGANIC MANURING
13. FARM YARD MANURE
14. HUMUS
15. COMPOST
16. CROP ROTATION
- IRRIGATION AND DRAINAGE
19. IRRIGATION SYSTEMS
20. INCUBATORS
21. MILKING MACHINE
22. SIMPLE FARM TOOLS
23. AGRICULTURAL MECHANIZATION
24. THE CONCEPT OF MECHANIZATION
55. LEGUMES
56. ESTABLISHMENT OF PASTURES
57. 201. FORAGE PRESERVATION
58. HAY SILAGE
59. FORESTRY IMPORTANCE OF FORESTRY 206. FOREST MANAGEMENT FOREST REGULATION DEFORESTATION AFFORESTATION
60. DISEASES AND PESTS OF CROPS
61. MAIZE SMUT
62. RICE BLAST
63. MAIZE RUST
64. LEAF SPOT OF GROUNDNUT
65. COW-PEA MOSAIC
66. COCOA BLACK POD DISEASE
check out these recent posts
- loans for businesses
- how to establish enterprises
- what is a firm
- price equilibrium
- scale of preference
- concept of economics
- economic tools for nation building
- budgeting
- factors affecting the expansion of industries
- mineral resources and the mining industries
- demand and supply
- types of demand curve and used
- advertising industry
- factors of production
- entrepreneur
- joint stock company
- public enterprises
- private enterprises
- limited liability companies
- migration
- population
- market concept
- money market
- shares
- how companies raises funds for expansion
- BALANCED DIETS
141. LACTATION DIETS
142. MALNUTRITION - RINDER PESTS
148. NEWCASTLE DISEASE
149. BACTERIA DISEASES
150. ANTHRAX
151. BRUCELLOSIS
152. TUBERCULOSIS
153. FUNGAL DISEASES
PROTOZOAN DISEASES
155. TRYPONOSOMIASIS
159. TAPE WORM
160. ROUND WORM OF PIGS
161. LIVER FLUKE
162. ECTO PARASITES
163. TICK