Budget Deficit Demystified

Abstract

Budget deficit, fiscal, revenue or primary have their own implications when countries prepare and present their budgets. In some countries, the deficits have contributed to growth and have also some times helped countries in tackling recession. In few others, it has caused havoc and tragedy to their economic systems. In view of both positive and negative aspects relating to budget deficits, it is important how country leaders look at them in different situations and circumstances. Deficit financing is also an art and a skill that country leaders will have to possess if they have to steer their economy to creating an environment of people welfare. An attempt has been made to look at the whole gamut of budget deficits, when annual estimated financial statements for the country as a whole is prepared by leaders of different countries.