ABSTRACT

This research was undertaken to ascertain the problems of budget deficit and its implications in the Nigerian economy. The study evaluates the perception of the management and staff of the Federal Medical Center Umuahia (FMC) with respect to their experiences as regards deficit in their establishment. This study ensures that government releases enough money to its establishment especially in the health sector. There are many Federal ministries in Umuahia from which the federal medical center was selected. At the federal medical center the DFA's office which has thirteen Departments was used, five departments, out of these 13 department were selected, Forty (40 ) staff was selected from the administrative department, fifteen (15) from Drug revolving fund department, fifteen (15) from Laboratory department, fifteen (15) from Management Information System department and fifteen (15) from revenue department. Interviews and questionnaires were used for the data collection. Some of the major findings made are as follows:- There are three (3) different types of budget in the federal medical center Umuahia;- Personnel, capital and overhead budget. There is a huge budget deficit in capital and overhead budget due to government's inability to release enough fund in these two areas which has caused untold hardship on the management and staff of the establishment. It was equally found out that budget deficit has financial and economic implications on the Nigerian economy which is being encouraged by corruption. Budget deficit can be reduced or eliminated by government exercising discipline, sticking to plans to keep to set targets and to refuse to grant extra budgetary warrants. At the successful completion of the study the following recommendations were made - Government should release enough fund for the running of the government establishments e.g. (FMC) which will alleviates the sufferings of people, and sufficient money will be available for the purchase of drugs, hospital equipment's ambulances etc and this will reduce hospital bills. Government should learn to keep to set targets, making room for greater management's accountability and refusing to grant extra budgetary warrants.