THE IMPACT OF BUDGET DEFICIT ON PRIVATE SAVINGS IN NIGERIA, (1980 –2012)

Abstract

This research work focused on the impact of budget deficit on private savings. The scope of the study spanned from 1980 to 2012 using time series from the CBN. Budget deficit is the difference between tax revenue and government spending when government spending exceeds tax revenue while Private Savings is the amount of money that the household did not spend on consumption but rather saves it. The existing body of theory and evidence establishes a significant likelihood that budget deficits have large effects on private savings. The broad objective of this study is to investigate the impact of budget deficit on private savings in Nigeria. The methodologies employed in this study include both the descriptive and inferential analysis. This includes summary of statistic, correlation matrix of distribution, and the inferential statistics used is the regression analysis. The variables used in the study are budget deficit, interest rate, inflation rate, population, real GDP are determinants of private savings.