Question

In one or two sentences, explain how a government pays for expenses that are more than its revenues.

Answer 1

1. borrowing people's money from bank by issuing bonds and securities to bank.internal source
1. International borrowing such as from world bank. external source
always inrernal source > external source

Answer 2

Government of any country have to pay humongous expenses per annum to complete many jobs in a national scale.

But if the expenses become more than the government's revenue,then the government follows following methods:

1) Increasing the taxes to increase the revenue as well.

2) Borrowing money from banks by different terms and conditions.

3) Borrowing from the international banks.