THE IMPACT OF BUDGET DEFICITS ON NIGERIA'S ECONOMIC GROWTH

This study empirically examines the effect of deficit budgeting on the growth of the Nigerian economy, focusing specifically on the impact of budget deficits, inflation, and government expenditure on GDP. Secondary data were sourced from the Central Bank of Nigeria Statistical Bulletin, and multiple regression analysis was employed to analyze the relationships among the variables. Findings indicate that deficit budgeting and inflation have no significant impact on economic growth, while government expenditure demonstrates a significant positive relationship with GDP. Based on these results, the study recommends that the Nigerian government prioritize financing budget deficits through improvements in revenue generation and efficient tax reforms rather than relying on domestic borrowing. Additionally, it emphasizes the need for mechanisms to ensure judicious and productive utilization of government spending to enhance economic growth