Economics Part B

Budget Deficit definition

Definition of Budget Deficit

It is a situation where total government expenditure exceeds total government income.

What Happens When There is a Budget Deficit?

According to the budget deficit definition where the government spends more than its income (usually is), then the government will decide to finance it either by availing a loan (Government bonds) or by selling of government assets (privatization).

Budget Deficit definition537Budget Deficit definition