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PAKISTAN SOCIAL SCIENCES REVIEW (PSSR)

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How to Cite

Impact of Budget Deficit on Economic Growth and Investment in Pakistan

Abstract

This study elaborates the impacts of budget deficit.Empirical research indicates that the shortfall has unfavourable consequences on the threshold, with a fiscal deficit of 5.67% of GDP. Fiscal policy will, therefore, stimulate inflation if the fiscal gap remains below the level. A balanced budget of a nation is essential to achieve sustainable economic development. Pakistan's budget deficit has detrimental economic development impact, study finds. Some measures to discourage such budget debt amounts from exceeding the target amount of increase are planned. The findings have shown that GDP contributes to savings and deficit. The budget deficit, however, would not raise GDP, according to the report. The report often promotes Keynesian budget shortfall beliefs, it says.

Authors

  • Dr. Rummana Zaheer
  • Associate Professor, Department of Economics, University of Karachi, Karachi, Sindh, Pakistan
  • Sumbul Jahan
  • Ph. D Scholar, Department of Economics, University of Karachi, Karachi, Sindh, Pakistan

Keywords

Degree of the Threshold, Economic Development, Fiscal Surplus, STAR

DOI Number

10.35484/pssr.2021(5-I)03

DOI Link

http://doi.org/10.35484/pssr.2021(5-I)03

Page Nos

23- 36

Volume & Issue

v5-1

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Pakistan Social Sciences Review (PSSR) by RESEARCH OF SOCIAL SCIENCES (SMC-PRIVATE) LIMITED(ROSS) is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
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Copyright 2016 PSSR Journal, Developed by M. Yaseen

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