Public deficit

We speak of public deficit, very simply, when a country’s expenditure exceeds its income. In these cases, it means that the state spends more than it can collect, thus influencing the public debt situation.

The state deficit can also be desired by the government, which decides to focus on economic growth and greater purchasing power for citizens. Otherwise, restrictive maneuvers serve to reduce state spending and try to reach a balanced budget.

With this second way of operating, it will be possible to not weigh on the public debt and have a deficit that can be used for regulatory deflationary policies.

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