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It allows gotverment to spend more, thus encouraging thier economy, in hopes to return more income from the effect.
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Why always Indian have deficit budget?
Indian economy operates at deficit budget because India is a growing economy and a deficit budget alway boosts the economy.Indian economy is a planned economy where the Fiscal budget of total expenditure is always higher than total budget receipts and capital receipts excluding borrowings.
Are there countries without a budget deficit?
YES there are, BUT not having debts does NOT say that their economy is healthy or they are a superpower
What should be a future effect upon the economy if a expansionary fiscal policy continues in an economy with an increasing budget deficit and growing national debt?
high inflation
What is a budget deficit?
A budget deficit is when the finances of a something exceeds its revenue. This basically means they have spent too much money.
What is the difference among fiscal deficit budget deficit revenue deficit and trade deficit?
fiscal deficit: not enough money budget deficit: not as much money as you had planned to have in your budget revenue deficit: not enough money coming in trade deficit: you are spending more money on imports than the amount of money which you receive for your exports.
Why always Indian have deficit budget?
Indian economy operates at deficit budget because India is a growing economy and a deficit budget alway boosts the economy.Indian economy is a planned economy where the Fiscal budget of total expenditure is always higher than total budget receipts and capital receipts excluding borrowings.
Are there countries without a budget deficit?
YES there are, BUT not having debts does NOT say that their economy is healthy or they are a superpower
Is Government operating balance and Budget deficit the same thing?
sorry not Budget deficit... budget balance
What should be a future effect upon the economy if a expansionary fiscal policy continues in an economy with an increasing budget deficit and growing national debt?
high inflation
What is a budget deficit?
A budget deficit is when the finances of a something exceeds its revenue. This basically means they have spent too much money.
What is the difference among fiscal deficit budget deficit revenue deficit and trade deficit?
fiscal deficit: not enough money budget deficit: not as much money as you had planned to have in your budget revenue deficit: not enough money coming in trade deficit: you are spending more money on imports than the amount of money which you receive for your exports.
Definition of budget deficit?
If the revenue is less than the expenditure, a budget is said to be in deficit. A budget is divided into 3: a. Surplus budget b. Deficit budget c. Balanced budget Surplus : REVENUE greater than EXPENDITURE Deficit : REVENUE less than EXPENDITURE Balanced : REVENUE equals EXPENDITURE
John Maynard Keynes suggested that budget deficits should be?
He believed deficit spending would stimulate the economy and create jobs.
Fiscal policy and monetary policy?
fiscal is the governments budget in terms of spending and expenditure. so there can either be a budget deficit or a budget surplus. when there is a budget surplus, government use a contractionary fiscal policy, and when there is a deficit, they use an expansionary fiscal policy. Monetary policy is used to combat an economy growing to quickly and inflation is rising. in most countries this is the Official Cash Rate. There is a tight monetary policy which government can impose if the economy is growing rapidly and this is used to constrict spending within that economy
Is a budget surplus better than a budget deficit?
It is better to have a deficit budget at it gives a boost to the economy for development with scope for further surplus (revenue or borrowing).Surplus budget is detrimental to economic growth because an economy will have resources but no plans.
What is primary deficit in a budget?
Primary deficit=Fiscal deficit-[minus] Interest payments
Can you make a sentence with Budget deficit?
The government was under pressure to raise more taxes due to the budget deficit they had.
