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it mean a country is basically i debt and losses money.

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16y ago

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Whether fiscal deficit is always bad?

Fiscal deficit is not always bad.... deficit arises from two parts - capital deficit and revenue deficit. now revenue deficit is obviously bad for economy stating that we are not able to pull money sufficient to meet our revenue and there is no asset creation. on the other hand if major fiscal deficit is coming from capital deficit its not all that a bad news. after all asset creation is taking place. n such moves are welcome.


A deficit appears in which corporation's financial statement?

as a deduction from total paid in capital


How can a deficit actually increase the productivity of the economy?

by importing investment goods used for capital deepening


On a balance sheet what does members' deficit mean?

On a balance sheet, Members' Deficit indicates that there is a lack of equity for the company's capital investors. Usually this account would be known as members' equity, but because the said equity is negative there exist instead a deficit.


How can a trade deficit actually increase of productivity of an economy?

by importing investment goods used for capital deepening


How can a trade deficit actually increase the productivity of an economy?

by importing investment goods used for capital deepening


How can trade deficit annually increase the productivity of an economy?

by importing investment goods used for capital deepening


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 is the relationship between capital account balance and current account balance?

The balance of payments, then, is the sum of the balance on current account and the balance on capital and financial account. It is important to understand that the deficit indicated by the current account is financed through activities recorded on the capital and financial account. The deficit on the current account must be exactly offset by the surplus on the capital and financial account (if it is not, net errors and omissions will correct it). This means then that the sum of the current account and the capital and financial account is equal to zero.


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.


What is the preferred method of resolving a partner's deficit balance according to the Uniform Partnership Act?

According to the Uniform Partnership Act, the preferred method of resolving a partner's deficit balance is typically through the obligation of the partner to contribute additional capital to the partnership. If a partner's capital account shows a deficit, they are generally required to restore this negative balance, often through cash contributions or other agreed-upon means. If the partner is unable or unwilling to make such contributions, the partnership may need to adjust the distribution of profits or losses to reflect the deficit.


Why balance of payment is always balanced?

balance of payments consists two accounts namely current account and capital account. The current account deals with import of visible and invisible items and unilateral transfers. a surplus in this accounts makes a country's BOP a surplus and a deficit in this accounts indicates that the country's BOP is deficit. The capital account indicates the capital movements of that country with other countries. it also shows the countries gold and other reserves. a surplus and a deficit in the current accounts increases and decreases the reserve and so the balance of payments is equalised always. so when we say that BOP is deficit we mean only the current account in the BOP. because BOP will always be equalised.