Fiscal Health and Developmental Outcomes in Brics Nations: New Answers to Old Questions

Insufficient and inefficient use of state resources amidst growing state budgetary expenditure has ensured that developmental outcomes in BRICS nations are kept at bay. Despite the one-time tremendous growth of the BRICS nations, stakeholders, policy makers, financial institutions and the society at...

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Bibliographic Details
Published in:Acta Universitatis Danubius. Œconomica 2019, Vol.15 (1), p.30-52
Main Authors: Oduyemi, Olusegun Gabriel, Osinusi, Kunle Bankole, Adekunle, Ibrahim Ayoade
Format: Article
Language:eng ; fre
Subjects:
Business Economy / Management
Disruption
Economic development
Expenditures
Financial institutions
Fiscal policy
Health status
Policy making
Public debt
Public policy
Revenue
State budgets
Welfare
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Summary:Insufficient and inefficient use of state resources amidst growing state budgetary expenditure has ensured that developmental outcomes in BRICS nations are kept at bay. Despite the one-time tremendous growth of the BRICS nations, stakeholders, policy makers, financial institutions and the society at large are concerned about the disruption in what has been an upward trend in growth and development activities of the BRICS nations. This paper examined the structural relationship between fiscal health and developmental outcomes of BRICS nations with the aim of coming up with the evidence-based prediction of development outcomes of BRICS nations as induced by fiscal irregularities. Findings reveal that debt to GDP ratio, government revenue, the ratio of cost of debt service to revenue, and welfare standard of the populace induces developmental outcomes in BRICS nations in the short-run. Based on the findings, we recommend concerted and prudent fiscal actions should be undertaken to ensure fiscal balance needed to guarantee sustained developmental outcomes in the BRICS nations.
ISSN:2065-0175
2067-340X