Deficit financing approaches and the Nigerian sector’s output

This study examined the effect of deficit financing on Sectorial Output in Nigeria from 1986–2020. The independent variable in the study is deficit financing measured by domestic debt, foreign debt, budget deficit, and Foreign exchange reserve while the dependent variable in the study is Sectorial Output measured by Manufacturing Sector and Services Sector Output. Accordingly, the two models support the ARDL Methodology since they reported mixed integration. The study found that domestic debt has a positive significant effect on Sectorial Output in Nigeria. More so, Foreign Debt has a negative insignificant effect on Manufacturing Sector Output. However, it has a significant effect on the Services Sector Output in Nigeria. Again, the study found that Budget Deficit exerted a positive significant effect on Manufacturing Sector Output. However, it exerted a negative insignificant effect on Services Sector Output. While Foreign Reserve exerted a negative insignificant effect on Manufacturing Sector Output, Foreign Reserve had mixed effects on Services Sector Output; such effect tends to be statistically significant only in the short run. Lastly, the both inflation rate and the interest rate have a mixed effect on Sectorial Output.

Methodological recommendations on digital rating of enterprises

Introduction. The introduction of tax rating will help to centralize the control over the activities of economic entities by various government agencies. On the other hand, tax rating will avoid subjectivity in the assessment of enterprises by the tax authorities and establish a transparent and understandable work of the tax authorities themselves for taxpayers and society as a whole. The purpose of the paper consists in a thorough study and analysis of international and domestic experience in rating the economic activity of enterprises by tax indicators in Ukraine to develop harmonized and unified guidelines for ranking business entities in the European integration of Ukraine. Results. To determine the company's rating by tax indicators, it is necessary to assess the company's payment of taxes, fees and other tax payments and introduce digital rating of the company's fiscal indicators, which, thanks to two-way communication, will reveal negative phenomena in enterprises and fiscal authorities. When ranking enterprises by tax indicators, it will be possible to avoid the corruption component in the distribution of budget funds, the provision of tax benefits, to identify the most important industries, regions and enterprises that need state aid. Also with the help of this rating and tax indicators, you can calculate the amount by region, region, industry, which large enterprises (unfortunately, the state as well) hide. You can also determine the reduction of gross product due to the large salaries of “predatory” top management. We remind you that Ukraine has a flat scale of taxation of individuals and the main tax revenues under this article are paid by the poor and middle class. That is, in fact, the poor and middle class pay pensions, including to the rich. Comparing the paid taxes and own revenues of the region plus determining the amount of domestic debt with its sources of repayment will significantly strengthen financial and tax discipline both in the center and on the ground. Such measures will significantly improve Ukraine's international image and simplify its entry into the international community. Conclusions. The proposed guidelines for digital rating of tax indicators of enterprises will improve the regulatory framework for determining the rating of the enterprise to obtain a scale of reliability of the enterprise as a business entity, eliminate significant problems of corruption in the fiscal system, improve financial and tax discipline primarily in central authorities, and secondly in industries, oblasts, cities, etc. These recommendations make it possible to establish opportunities for honest enterprises to obtain various privileges from the state and to avoid unreasonable and often ineffective inspections by tax and other authorities.

A RESEARCH ON THE CAUSAL RELATIONSHIP BETWEEN INVESTMENT PREFERENCES

This study aims to measure the causal relationship between the dollar and euro at exchange rates among today's investment instruments and the deposit interest rate, Gold, Bist xu100 and the index of government domestic debt securities.Dec. Dec. The data in the study are daily data between 17/08/2017-26/05/2021 and were selected from a recent time Dec. Data with CBRT evds resources investing.com retrieved from. In this way, it is possible to see how variables adapt to today's financial world and the pandemic period. The method of the study is the Granger causality test, which is often used in time series analysis. When individuals make investment choices, they choose according to the fact that macro variables such as inflation, growth rate, and Exchange Rates fluctuate during periods of crisis and recession. This often affects even the credit demands of institutional investors. Central banks want to influence macro variables with various intervention tools, but because the economies of some countries are fragile, individuals can often suffer even as a result of these optimistic policies. According to the results of this study, the dependent variable in the model where the BIST100 index of the dollar and gold values, the probability of 0.000<0.05 causal relationship is true of dollars for deposit in the model where the dependent variable is the interest rate of government securities of the index, the probability value of 0.0001 p<0.05 and Bist100 index 0.0162 probability value<0.05 and the probability for the value of the dollar 0.02<0.05 can be considered to be a causal relationship due to being towards deposit rates. The probability of the dependent variable in a model of the euro BIST100 index value 0.0001 p<0.05, gold probability value of 0.000<0.05 Euros causal relationship is true for government securities in another model where the dependent variable of 0.0040 p<0.05 probability value from deposits with interest ,0.0000 p<0.05 0.0043 Bist100 index and the probability value p<0.05 is the probability for the value of government securities under de towards causality can be said. In a model in which the Bist100 index is a dependent variable, there was a causal relationship towards the Bist100 index ,as the probability value of the euro was 0.0012<0.05, the probability value of gold was 0.0000<0.05, the probability value of government domestic debt securities was 0.0013<0.05, and the probability value of the dollar was 0.0007<0.05. Finally, the model in which gold is a dependent variable concluded that there is no causal relationship between the Euro, dollar, dibs and Bist100 index and deposit interest to gold, since the probability values of other variables are greater than 0.05.

External Debt Burden and Infrastructural Development Nexus in Nigeria: An ARDL Approach (1981-2020)

This study focused on external debt burden and infrastructural development nexus in Nigeria using data spanning between the periods 1981 to 2020 by employing the use of Autoregressive Distributed Lag Model (ARDL) and granger causality test as the major statistical techniques of analysis. From the findings, the coefficient of error correction term shows that about 70 percent of the discrepancy between the actual and the long run or equilibrium value of infrastructural development is corrected or eliminated each year. The coefficient of determination (R2) is 0.680 which shows that about 68 percent variations in the infrastructural development were explained by the independent variables. The Augmented Dickey Fuller (ADF) unit root test shows that all variables were stationary at first difference. The results for the Bounds test reveal that there is a long run relationship among the variables. This is because the F-statistics value (5.194) is greater than upper Bounds critical values at 5% level of significant. The ARDL results show that external debt, domestic debt and inflation rate have a negative impact on infrastructural development in the long run while exchange rate and interest rate has a positive effect on infrastructural development in the long run. Also, domestic debt and exchange rate were found to have a significant impact on infrastructural development while external debt, inflation rate and interest rate were found to be insignificant in the long run. Furthermore, the granger causality test results indicate while there is no causality between external debt and infrastructural development, there seems to be a unidirectional causality between domestic debt and infrastructural growth in Nigeria. The study concludes that federal government of the country should cut down excessive borrowings and that the existing ones are invested in projects that would eventually generate enough returns to defray such debts accordingly. Also, an adoption of policy framework that will ensure macroeconomic stability such as price stability, job creation, increased output, political stability, etc. becomes fundamental in getting rid of heavy reliance on external debt in the country.

Total DEBT and Economic Growth of Nigeria – A Causal Approach

This study xrayed the impact of total debt on economic growth of Nigeria using data from the Central Bank of Nigeria’s statistical bulletin from 1981 to 2019 period. The analytical tool used was the E-view version 13 where the multicollinearity test showed that domestic debt and external debt move predominantly in the same direction with gross domestic product. The result of the Error Correction Model shows that it was appropriately signed at 13.9% meaning that the previous period’s disequilibrium in economic growth (proxied by GDP) value is corrected every year by external and domestic debts. Following the result, it is evident that external debts incurred in Nigeria over time are good debt, as this has over time exerted no critically negative impact on the growth level of the nation. Similarly, the result shows that domestic debt exerts a positive long run and short run impact on economic growth of Nigeria. Using the Granger Causality test it was observed that External and Domestic Debt granger causes GDP, the implication of this is that total debt of Nigeria if properly utilized, stimulates economic growth as seen in the granger causality test. The researcher amongst other recommendations suggest that Policy makers should integrate appropriate measures towards ensuring suitable management of domestic debts so as to enhance the productivity level of the country.

Bad Bank is Actually a Good Idea

This article demonstrates the effect of bad loans in India which was developed recently by the Indian Finance Minister. Bad banks operate like a concept in the domestic debt sector where the amount of domestic debt is high and even the market has enough scale to bear enough price-discovery and market-making. there was a proposal made to the government, to merge the NPA portfolio with a new establishment known as an Asset Rehabilitation Corporation (ARC), that would purchase the principal of the Non-performing Assets (NPA) portfolio at a book valuation (not market value) and these accounts would be taken over by the new company to manage the portfolio of the new command (which will be established with a capital of Rs 10,000 crore). The government says that it is intervening to mitigate potential damages that the banks could suffer as a result of the provisioning for non-performing assets and recapitalisation that the government (as a majority investor of most PSBs) may be required to invest on. With the forthcoming Union budget’s planning an outpouring of clamour and market demand is being felt to set up a ‘poor bank’ to sweep bad debts.

Determinants of Government Expenditure In Southwest Nigeria

This study examined the determinants of government expenditure in Southwest Nigeria. The study adopted ex-post facto research design and it covered 10 years, spanning from 2010 to 2019. The panel data used was sourced from the CBN statistical bulletin (2019) and the annual budget of each of the sampled states. Panel data estimation techniques were used and based on the most consistent and efficient estimation, it was discovered that internally generated revenue exerts a positive significant effect on both capital and recurrent expenditure to the tune of1.315 (p=0.000 < 0.05) and 0.670(p=0.001 < 0.05) respectively. It was equally discovered that statutory allocation exerts a positive but insignificant effect on both capital and recurrent expenditure for the period covered to the tune of 0.34 (p=0.236 > 0.05) 0.389 (p=0.065 > 0.05) respectively. Also, it was discovered that domestic debt exerts a negative insignificant effect on capital expenditure to the tune of -0.061 (p=0.733 > 0.05). Finally, domestic debt has a positive but insignificant effect on recurrent expenditure to the tune of 0.109 (p=0.352 > 0.05). It was established that internally generated revenue, statutory allocation and domestic debt are the determinant factors of public expenditure across all the states in the Southwest region of Nigeria. Thus, it was recommended that available revenue should be judiciously utilized on the pressing needs of the state. While revenue is needed for the functionality of the government, state governments are urged to embrace more capital projects through which additional revenue might be generated.