Journal of Governance and Accountability Studies
Vol. 6 No. 2 (2026): July

Impact of Fiscal Indiscipline on External Debt in Sub Saharan Africa

Talent Kondo (Bindura University of Science Education, Bindura, Zimbabwe)
Victoria Masere (Midlands State University, Gweru, Zimbabwe)
Pretty Moyo (Midlands State University, Gweru, Zimbabwe)



Article Info

Publish Date
01 Jul 2026

Abstract

Purpose: This study examines the impact of fiscal indiscipline on external debt in Sub-Saharan Africa (SSA). Methodology: The study employs panel data analysis using a Random Effects Model (REM), covering the period from September 2009 to December 2020. Results: The findings reveal a negative relationship between primary fiscal balances and external debt. Fiscal deficits increase external debt accumulation, whereas fiscal surpluses contribute to its reduction. Conclusions: Fiscal indiscipline contributes to external debt accumulation in SSA. Lower primary fiscal balances, particularly persistent deficits, are associated with higher external debt levels, highlighting the importance of fiscal discipline in maintaining debt sustainability. Limitations: The study is limited by data availability during the observed period, and potential data quality issues may affect the reliability and generalizability of the findings. Contributions: This study provides empirical support for fiscal discipline and debt sustainability theories by demonstrating the relationship between primary fiscal balances and external debt accumulation. It extends theoretical understanding of how fiscal imbalances influence external indebtedness in developing economies, particularly SSA. Novelty: This study addresses a gap in the literature by examining fiscal indiscipline as a determinant of external debt in SSA. It offers region-specific empirical evidence and practical recommendations for balancing government revenues and expenditures, strengthening fiscal management, promoting economic stability, and enhancing economic resilience in developing countries.

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Journal Info

Abbrev

jgas

Publisher

Subject

Social Sciences

Description

The Journal of Governance and Accountability Studies (JGAS) is an online peer-reviewed, open access scholarly journal, which publishes critical and original analysis from researchers and academic practitioners on various social, political and government issues. JGAS welcomes high-quality manuscripts ...