Budget Deficit: A Dilemma of Pakistan’s Economy

Authors

  • Muhammad Zahir Faridi Bahauddin Zakariya University Multan, Pakistan
  • Rashid Ahmad Bahauddin Zakariya University Multan, Pakistan
  • Altaf Hussain The Islamia University of Bahawalpur, Pakistan
  • Ahmad Usama Bahauddin Zakariya University Multan, Pakistan

DOI:

https://doi.org/10.52131/joe.2022.0401.0066

Keywords:

Budget deficit, Debt Burden, GDP, ARDL, Pakistan

Abstract

The study has been carried out for investigating the effects of nominated independent variables on the budget deficit of Pakistan. For it, data has been collected for the period ranging from 1972 to 2019. ARDL Technique has been employed for carrying out the empirical analysis. The dependent variable is budget deficit; however, oil price hikes, work remittances, per capita income, corruption, and GDP deflator is marked as the independent variable. The fallouts of the empirical analysis reveal that there exists a direct association among the dependent and independent variables except for per capita income and work remittances as they are related indirectly.

Author Biographies

Muhammad Zahir Faridi , Bahauddin Zakariya University Multan, Pakistan

Director/ Professor, School of Economics

Rashid Ahmad, Bahauddin Zakariya University Multan, Pakistan

Assistant Professor, School of Economics

Altaf Hussain, The Islamia University of Bahawalpur, Pakistan

Assistant Professor, Department of Economics

Ahmad Usama, Bahauddin Zakariya University Multan, Pakistan

M.Phil. Scholar, School of Economics

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Published

2022-03-31

How to Cite

Faridi , M. Z. ., Ahmad, R. ., Hussain, A., & Usama, A. . (2022). Budget Deficit: A Dilemma of Pakistan’s Economy. IRASD Journal of Economics, 4(1), 117–126. https://doi.org/10.52131/joe.2022.0401.0066

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Articles