The Size, Financing and Impact of the Public Sector Deficit, 1975-198

The manner by which the government has chosen to finance the fiscal deficit in the given period and the economic consequences of financing of government expenditures are discussed in this paper. It documents the size of the government deficit from 1975-1984 through the presentation of a consistent series of consolidated public sector. It also analyzes the implications of the fiscal deficit on public debt, interest rate, capital formation, money creation and inflation.