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Budget Deficit implies the difference between earnings and spendings by the government. If written very simply say tax collections as earnings and some kind of spendings. Now if the spending is more than earnings it implies that the government is spending more than it can afford (either on credit or by taking loans which may be unsustainable) and causing a pseudo demand or excess demand relative to a given supply causing a demand pull inflation. Later if the government fails to say repay the debt the value of the economy's currency may depreciate as it would indicate that the economy doesnot have enough production/investment capabilities to meet the debts.
Wiki User
∙ 10y ago
Wiki User
∙ 11y agoGood for government and bad for citizens who paid more taxes than were needed.
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When does a budget surplus result?
A budget surplus results when the goverment collects more money than it spends.
When did the first federal budget surplus in three decades occur?
in 1998 the United States achieved its first federal budget surplus
What can the government do when it a budget surplus?
Pay back bondholders
When the government runs a budget deficit what must it eventually do in order to pay back its debt?
Have a budget surplus
How is surplus created?
A budget surplus occurs when a person receives more money than they were planning to spend. The surplus could be saved, invested or put towards a larger purchase.
When the government runs a budget deficit what must in eventually do in order to pay back its debt?
have a budget surplus
Can you make a sentence with Budget surplus?
The government could invest now because of the budget surplus that they had.
When does a budget surplus result?
A budget surplus results when the goverment collects more money than it spends.
When revenues exceed expenditures, _____.?
there is a surplus or profit.
What is surplus budget?
A surplus budget is a year in which more money is taken in than is spent. This situation is very unusual in recent years, but did occur a couple of times in the 1990s.
Which year Pakistan budget is surplus?
1969, 1998, 1999, 2000, and finally 2001 these five years had budget surplus for Pakistan
When did the first federal budget surplus in three decades occur?
in 1998 the United States achieved its first federal budget surplus
When revenue exceeds expenditures?
there is a budget surplus
What are the kinds of budget included in strategic plan?
Budget deficit, surplus, and balanced.
Did president bush inherit a budget surplus fron president Clinton?
When Bill Clinton left office it was believed that he left with a budget surplus. It has since been reported that there was no actual surplus; it was all "on paper."
Since 1965 the federal budget?
Has shown a budget surplus for only two years
What was the budget situation of the federal government at the end of the twentieth century?
C. there was a budget surplus
