 Corresponding author: Umeh Anthony Chinedu Department of Economics, Enugu State University of Science and Technology. Copyright © 2021 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0. Impact of government budget deficits on public health sector output in Nigeria Chinedu Anthony Umeh 1, * , Chinedu Daniel Ochuba 2 and Ugochukwu Remigius Ihezie 3 1 Department of Economics, Enugu State University of Science and Technology. 2 School of Business Education, Federal College of Education (Technical) Umunze. 3 Department of Social Science (Economic Unit), Federal Polytechnic Nekede Owerri. World Journal of Advanced Research and Reviews, 2021, 11(02), 350–364 Publication history: Received on 21 July 2021; revised on 25 August 2021; accepted on 27 August 2021 Article DOI: https://doi.org/10.30574/wjarr.2021.11.2.0403 Abstract The study examined the impact of government budget deficits on the public health sector output in Nigeria over a period of 1980 to 2018. The specifically study sought to: investigate the impact of government budget deficits affect the public health sector output in Nigeria, ascertain the impact of external borrowing on the public health sector output in Nigeria and evaluate the impact of domestic borrowing budget deficits financing on the public health sector output in Nigeria. The methods of data analysis range from argument dickey fuller unit root test, Johansen co-integration test and finally error correction method. The following results were the basic findings of the study: (1) government budget deficits have positive insignificant impact on public health sector output in Nigeria (t – statistics (0.5663) < t0.05 (1.684); (2) external borrowing of financing budget deficits has negative insignificant impact on Health sector output in Nigeria (t – statistics (-1.2746) < t0.05 (1.684) and (3) domestic borrowing of financing budget deficits has positive significant impact on Health sector output in Nigeria (t – statistics (2.1711) > t0.05 (1.684). This study concludes that the budget deficits of government have positive insignificant impact on Health sector output in Nigeria because more budget allocations are put in health recurrent government expenditure than health capital expenditure whereas health capital expenditure is the engine of growth in health sector output. The study recommended that the Federal Government should commence and continue to execute the National Health Act. Allocation’s map-out for the Basic Health Care Provision Fund (BHCPF) should be drawn directly from the National Health Act, which is not less than 1% of the Consolidated Revenue (CRF) Fund of the Federation and is to flow from the FG's share of revenue. Keywords: Government Budget Deficits; Health Sector Output; External Borrowing Budget deficits financing; Domestic Borrowing Budget deficits finance 1. Background of the Study The Nigeria government has been committed to a stable macroeconomic environment, characterized by low and stable inflation and sound fiscal policy. Starting from 1970s to date, the government of Nigeria has been going through great, prolong and inconsistent budget deficits. Regardless of all socio-economic public policy employed in most recent time which emphasized appropriate management through fiscal policy. Nigeria economy is characterized with budget deficit coupled with a stunted economic growth. The primary danger of a budget deficit is inflation, which is the continuous increase of price levels. In the Nigeria, a budget deficit always causes the Nigeria monetary authority to release more money into the economy on the account to feed inflation. Consistent budget deficits can lead to inflationary monetary policies on yearly bases [1]. Empirical studies of scholars have proved that government budget deficit always result to the need for reduction in expenditure of government in near time. Higher government deficits are not sustainable forever. A decrease budget