Study Notes
Fiscal Policy - Causes of a Budget Deficit
- Level:
- AS, A-Level, IB
- Board:
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 3 Jul 2018
Governments in many countries run persistent annual fiscal deficits. A budget deficit occurs when tax revenues are insufficient to fund government spending, meaning that the state must borrow money, usually in the form of government bonds.
Revision video: Key Causes of Cyclical and Structural Budget Deficits
![](https://tutor2u-net.imgix.net/subjects/economics/government_borrowing_uk.jpg?auto=compress%2Cformat&fit=clip&q=80&w=800)
You might also like
![](https://tutor2u-net.imgix.net/user-photos/gbr_profile.jpg?auto=compress%2Cformat&crop=focalpoint&fit=crop&fp-x=0.5&fp-y=0.5&h=100&q=80&w=100)
John Van Reenen on Austerity
11th March 2015
Budget 2017 - Micro and Macro effects
8th March 2017
Should the rich be taxed more?
2nd September 2017
Test 12: A Level Economics: MCQ Revision on Economic Cycles and the Multiplier
Practice Exam Questions
4.5.2 Taxation (Edexcel)
Study Notes