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Chapter no 5

Analysis/discussion Recommendation and Conclusion:To analsis all the fact and figure we find that the budget deficit/surplus the very important element in the prosperity of the country this is show the economic and financially trend of the country we study the different counties of the world like USA Austria Nigeria and others but we mane focus on the medal east country like Pakistan Sri lanka and other developing country that struggle against this problem. We used the different research of the different researcher special we conclude the research of the (chaudhary & Ahmad, 1995) and sir (dislva, 1977) they also conduct there study about the developing countries also we used the different research of the different countries and see that who to other countries solved this problem. Some of them increased there exports and invest in there domestic production some countries improved there money markets some of them create the habits of saving in there country the people invest in national saving some of them decreased there interest rate to solve there problem we want to drought that technique to move out this problem. We analysis and study about the budget deficit/surplus and the different factor that fact on the government income and expenditure we examine the inflection real interest rate foreign direct investment imports and exports and some others factors also study about the different countries. According to j,borrow 1989 he recommended that the interest rate must create its effect on the government income and expenditure if the government increased in rate of interest as compare to the domestic financial institution it must develop the habit in people to save there money and deposited in the government authorized institution it will help the government to managing the budget of the country. Some other country used that formula and managing there budget like Canada and Australia (j,barrow, 1989) We find the significant relationship between the imports and exports of the country and the government budget deficit/surplus that’s why we give the main focus on that variable sammad &

(KIM. (Bilqiees 1988) . 2002) World Bank also play it important role to improve the exports of the East Asia country give them the funds and give the subsidies on the exports some of the countries take the advantages of that benefits but some does not take advantage from that policies just because of poor governess and politic instability. (Sammad and mehmood.mehmood also made a comprehensive literature on that variable also they find the significant effect between these variable they say that the imports and exports create there effect on the budget of the country. (Nesinstion. 1999) In our study we find the significant relationship between the inflection and budget deficit/surplus. Sir desilva 1977 and miss Rehana sadiqui also examine and find the relationship between the inflection and budget deficit farther we take the words from the literature research written and examine by the (Bilqiees 1988) she says that if the inflection increased the budget deficit also increased so they all find the significant effect between these two variables they also focused on the FDI in the country but they did not expend they study about these variable because they did not find the relationship between them. 1985) Dissection and debate:- In Korea (1980 to 2003) the researcher find the high significant effect of the imports and exports of the country and budget of the country also they says that the FDI is one more element that create its effect on the budget of the country they says the imports and exports improved the productivity of the country when a country increased it export it will help the government to decreased the budget deficits. But these are the factor that also create there effect on the government budget like population money markets and so on.

Also improve the financial instantiations that work under the government of Pakistan to develop the habit of saving in the people. If the country like Pakistan want to come out this problem must improved the political system also they need to improved the exports of the country and avoid the used of imported good inflection is one more problem government must come forward to solve the problems also invest money in the domestic markets the foreign direct in very important to decreased the inflection of the country but it will come with the well established money markets so Pakistan must improved the money markets in the country. There are so many other causes of this problem like gross domestic products liberalization people behaviors and very important terrorism that to day Pakistan faced our study is limited and fours on inflection import and exports FDI and interest rate in witch we find relationship between the inflection import and export and budget deficit. . But in medal east counties like Pakistan till face that problem because of the poor governess political insatiability less foreign direct investment nor stable real inter rate short/less exports of goods and services and high imports of good and services. The investor is hesitating to invest his money in the instable money market of those particular countries. We find the various problems in many country like USA \Canada Niger also medal east countries we find that many of the countries in the world that faced this problem but some of the countries improved there self and come out this problem.After all dissection analyses and detail study of all fact we as a researcher conclude and debate upon the effect of inflection foreign direct investment real interest rate imports and exports on the government budget deficit/surplus. We focused in developing countries because mostly the developing countries faced this problem today some time the developed country also faced the budget deficit but they recovered very some just because of there strong political structure and well educated people. The peoples less confident upon the government financial institutes and deposited there money in private domestic bank and financial institutes one other think in storage of money markets.

Recommendations:Budget deficits/surplus     Money markets national savings High exports (goods & services) low imports of goods services Control the inflection political instability Law & orders Inflection          Problem medal east countries (developing country) Effect on government (income & expenditure) Government interest (campaign & information’s) Real interest rate Effect on government income/expenditure National saving Low interest rate then domestic money markets (banks) Foreign direct investment Government instability Active money markets Investment environment (attract investors) Import (goods & services    Domestic good & services High Tax rate S Exports (goods & services)   Improve the domestic markets Landing from money markets .

To improve and solve this problem government must take active part to solve this problem awareness of the people is very important to solve the problem. . Tax fee & agriculture products Conclusion: The conclusion of the study is budget deficit/surplus is the back bone of the economy of the country to day mostly developing countries face the huge budget deficit. Insufficient exports of goods and services and huge imports of good also inflection. Established money markets the investor hesitate to invest the money. In our study we conclude that the reason of this is weak political system.