A BUDGET DEFICIT AND THE NATIONAL DEBT

A Budget Deficit and the National Debt

A Budget Deficit and the National Debt

Budget deficit is the amount by which total government spending is more than government income during a specified period; the amount of money which the government has to raise by borrowing or currency emission in order to make up for the shortfall in tax revenues. On the other hand National debt denotes the total sum of the outstanding debt obligations of a country's central government.

"Spending finances not by current tax receipts? but by borrowing or drawing upon past tax reserves.” (Burda and ...