Question

issue in fiscal deficit management
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Answer 1

Answer:

Fiscal deficits are negative balances that arise whenever a government spends more money than it brings in during the fiscal year. This imbalance, sometimes called the current accounts deficit or the budget deficit, is common among contemporary governments all over the world. Since 1970, the U.S.

Answer 2

Answer:

The main problem is that when government expenditure does not fall, it has to run a deficit, which raises interest payments and causes total government expenditure including interest payments to rise as a share of GDP.

Fiscal Deficit is a termed used to refer to the difference between the government's total revenue and total expenditure in a financial year. Since the government borrows from the market to bridge this gap, this also indicates the total borrowings needed by the government in a particular year.

Explanation:

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