Question

Explain the relation between government deficit and government debt​

Answer 1

1. Government deficit is the excess of total expenditure over total receipt of the government; whereas, government debt is the amount of liability, owed by the government to the public, foreign and other institutions. In other words, if the government continues to borrow to finance deficit, it leads to additional debt

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Answer 2

Answer:

Government deficit is the excess of total expenditure over total receipt of the government; whereas, government debt is the amount of liability, owed by the government to the public, foreign and other institutions. ... In other words, if the government continues to borrow to finance deficit, it leads to additional debt.

Explanation:

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