eelarvepuudujääk

Eelarvepuudujääk refers to a situation where government expenditures exceed government revenues over a specific period. This means that the government has spent more money than it has collected in taxes and other income. When a budget deficit occurs, the government typically needs to borrow money to cover the difference. This borrowing can be done through issuing bonds or other debt instruments.

The causes of a budget deficit can be varied. They may arise from increased government spending on public services, infrastructure projects, or defense, or from a decrease in tax revenues due to economic downturns, tax cuts, or changes in tax policy. Persistent budget deficits can lead to an accumulation of national debt, which can have implications for future economic growth and stability. Managing and reducing budget deficits is often a key objective of fiscal policy. Strategies to address deficits can include reducing government spending, increasing taxes, or a combination of both. The size of the deficit relative to the size of the economy (often expressed as a percentage of GDP) is a common measure used to assess its significance.