WAYS OF FINANCING DEFICIT BUDGET BY GOVERNMENT AND THEIR EFFECTS

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WAYS OF FINANCING DEFICIT BUDGET BY GOVERNMENT AND THEIR EFFECTS

The ways of financing deficit budget include the followings:

  1. 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.

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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.

  1. 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.
  2. It causes inflation: The emergence of inflation is caused by too much money in circulation chasing few goods and services.
  3. It causes depreciation of currency: Too much money in circulation tends to cause depreciation or lower the value of that country’s currency.

  1. 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.
  2. It encourages importation of goods: Budget deficit is well known to discourage expert but rather it encourages the importation of goods from other countries.

  1.  economic tools for nation building
  2. budgeting
  3. factors affecting the expansion of industries
  4. mineral resources and the mining industries
  5. demand and supply
  6. types of demand curve and used
  7. advertising industry
  8. factors of production
  9. entrepreneur
  10. joint stock company
  11. public enterprises
  12. private enterprises
  13. limited liability companies
  14. migration
  15. population
  16. market concept
  17. money market
  18. shares
  19. how companies raises funds for expansion
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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

  1. 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

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