Eelarvepuudujääki

Eelarvepuudujääk refers to a situation where government expenditures exceed government revenues in a given fiscal period. This shortfall means that the government has spent more money than it has collected through taxes, fees, and other income sources. When an economy is experiencing an eelarvepuudujääk, it typically needs to borrow money to cover the difference. This borrowing can be done through issuing government bonds or other debt instruments.

The causes of an eelarvepuudujääk can be varied. Economic downturns often lead to reduced tax revenues as businesses and individuals earn less. Simultaneously, governments may increase spending on social programs or stimulus measures to counteract the recession. Conversely, unexpected events, such as natural disasters or wars, can necessitate significant unplanned expenditures. Policy decisions, such as tax cuts or increased spending on public services, can also contribute to a deficit if not matched by revenue increases.

Persistent and large eelarvepuudujäägid can have several consequences. They can lead to an increase in national debt, which requires interest payments that further strain future budgets. High levels of government debt can also potentially lead to inflation or affect a country's credit rating. Governments often employ various strategies to manage or reduce eelarvepuudujääk, including increasing taxes, cutting spending, or implementing economic growth policies that boost revenue. The approach taken depends on the specific economic context and the political priorities of the government.