KIJHUS Volume. 1, Issue 3 (2020)

This study examines the impact of fiscal deficit on economic growth in Nigeria for period of 1980 to 2018. Sequel to the mixed level of stationarity of the variables as evidence in the result of the unit root test, this study adopts auto-regressive distributed lag (ARDL) technique and the result of the study shows that fiscal deficit is detrimental to economic growth in Nigeria. This study is in tandem with neoclassical paradigm. The study argues that one of the main reason why fiscal deficit is adversely affecting the economic growth in Nigeria is because of the pattern of her public spending which is heavily skewed in favour of recurrent expenditure which may not stimulate growth. Thus, the study recommends that government should review her pattern of spending to favor productive sector by so doing the economy will strive to greatness. Also, government should minimize her borrowing and look inward for ways to generate revenue. Lastly, if government wants to operate fiscal deficit, it should be only during recession and high unemployment.