Prior to the 1970s, the choice of fiscal policy stance was assumed to be largely determined by economic factors alone. However, with the emergence of the institutional school of thought, economists have increasingly paid more attention to the non-economic determinants of fiscal policy. In particular, the increased persistence of fiscal deficits and continued low rates of growth in developing countries since the late 1970s have resulted in an increase in the attention paid to the impact of political and institutional factors. In general, fiscal deficits occur where government commitsitself to spending more than it earns asrevenue. Wosowei (2013) on the other hand defines deficit as the total amount of debt or financial resources required by government to meet its expenditure requirements. It could be the excess of government spending inclusive of loans net payment, over its non-debt capital earnings, and revenue earnings. The main motivation for the implementation of fiscal deficits lies in its role as an instrument for macroeconomic stabilization and income redistribution (Antwi et al., 2013).