Eelarvevõla

Eelarvevõla, often translated as budget deficit, refers to a situation where government expenditure exceeds government revenue over a specific period, typically a fiscal year. This shortfall means the government has spent more money than it has collected through taxes, fees, and other income sources. To cover this deficit, governments often resort to borrowing, which increases the national debt.

The causes of a budget deficit can be varied. They may include unexpected increases in government spending due to emergencies like natural disasters or economic recessions, or planned increases in spending for social programs or infrastructure projects. Conversely, deficits can also arise from decreases in government revenue, such as tax cuts or a slowdown in economic activity leading to lower tax collections.

Managing a budget deficit involves several approaches. Governments can aim to reduce spending by cutting programs or improving efficiency. Alternatively, they can seek to increase revenue through higher taxes or by stimulating economic growth to boost tax receipts. The long-term implications of persistent deficits include a rising national debt, which can lead to higher interest payments, potentially crowd out private investment, and may affect a country's credit rating. Understanding and addressing budget deficits is a key aspect of fiscal policy for most nations.