ECONOMYWATCH.COM – A Budget Deficit is a common economic phenomenon, generally taking place on governmental levels. Budget Deficit occurs when the spending of a government exceeds that of its financial savings. In fact, budget deficit normally happens when the government does not plan its expenses, after taking into account its entire savings.
Budget Deficit: Some facts and Information
Budgetary deficits when accrued for a very long span of time, say for several decades or centuries, is termed as Government Debts. Under such circumstances, a certain portion of the governmental expenditure is then utilized for repayment of such debts, with some maturity. This maturity is capable of being re-financed, through the issuance of fresh bonds on governmental level. However, it must be noted that while a budget deficit is considered to be a flow, a government debt amounts to a stock. In fact, government debts are nothing but an accrued flow of budget deficits.