Budget Deficit

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Budget Deficit

A budget deficit occurs when government spending is greater than tax revenues. Reducing the deficit can be achieved by tax increases or cuts in government spending or a period of GDP growth which brings about a rise in direct and indirect tax revenues.

In the News Teaching Activity – Can the UK afford a big rise in defence spending? (July 2026)

13th July 2026
In the News Teaching Activity – Is the recent reduction in government borrowing likely to last? (May 2026)

7th May 2026
Macro Case Study: Argentina and debt

Topical case studies
In the News Teaching Activity – What is happening to the number of NEETS in the UK (Mar 2026)

12th March 2026
In the News Teaching Activity – How worrying is the recent increase in inflation? (Jan 2026)

26th January 2026
In the News Teaching Activity – Can the Budget measures help to boost UK living standards? (Dec 2025)

1st December 2025
In the News Teaching Activity – is the UK budget deficit too high? (Oct 2025)

30th October 2025
In the News Teaching Activity – Can we expect the plans in the Spending Review to bring back growth? (June 2025)

16th June 2025
In the News Teaching Activity – Surprise growth for the UK economy in the fourth quarter, 2024 (Feb 2025)

17th February 2025
In the News Teaching Activity – how concerning is the increase in government borrowing? (Jan 2025)

30th January 2025
In the News Teaching Activity – why has the pound been falling this year? (Jan 2025)

13th January 2025
In the News Teaching Activity – How lower-than-expected inflation affects people (Oct 2024)

28th October 2024
2.6.2. Distinction Between Government Budget (Fiscal) Deficit and Surplus

Study Notes
IB Economics - The Budget Outcome

Study Notes
IB Economics - Types of Government Expenditures

Study Notes
In the News Teaching Activity – the UK economic trends 2010-24, success or failure? (June 2024)

10th June 2024
In the News Teaching Activity – what’s been happening to public finances? (Apr 2024)

29th April 2024
In the News Teaching Activity – can the Chancellor cut taxes in the upcoming budget? (Mar 2024)

4th March 2024
2.6.2. Fiscal Policy - Government Spending (Edexcel A-Level Economics Teaching PowerPoint)

Teaching PowerPoints
Fiscal Policy - examine the significance of changes in government spending in an economy such as the UK

Study Notes
4.5.1 Public Expenditure (Edexcel)

Study Notes
2.2.4 Government Spending (Edexcel A-Level Economics Teaching PowerPoint)

Teaching PowerPoints
The Difference between a Fiscal Deficit and a Trade Deficit

Study Notes
Economic Growth and the Budget Deficit - Chains of Reasoning

Topic Videos
Why Keynes argued there must be limits to government borrowing.

24th June 2021
The Debt Deficit Distinction

16th January 2017
What's Happening With the Government's Finances?

7th March 2017
Monetary and Fiscal Policies Revision Quiz

Quizzes & Activities
Fiscal Policy - Managing Aggregate Demand and Inflation

Study Notes
Macro Revision - Aspects of Fiscal Policy

Teaching PowerPoints
Ten Structural Problems Facing the UK Economy

Study Notes
Perspectives on the 2021 Budget

4th March 2021
The 2021 Budget at a Glance

3rd March 2021
Highest December borrowing on record as UK national debt approaches 100% of GDP

22nd January 2021
Fiscal Policy: How government spending in the UK is split

29th November 2020
VAT cut - will firms lower prices for consumers?

17th July 2020
The Government Game - Economic Simulation Activity

Quizzes & Activities
Fiscal Policy: Government Spending

Topic Videos
Fiscal Policy: The Budget Deficit

Topic Videos
A Model Tax Rise? - Japan Lifts Sales Taxes

3rd October 2019
Advantages and Disadvantages of a Budget Deficit

Topic Videos
Fiscal Policy - Government Borrowing

Study Notes
Cyclical and Structural Budget Deficits

Topic Videos
Fiscal Policy - Causes of a Budget Deficit

Study Notes
Fiscal Deficits and the National Debt

Topic Videos
Focus on Productivity

23rd November 2017
The Autumn Budget 2017 - prepare for the Budget with "The Double Agent" activity

13th November 2017
Budget 2017 - Micro and Macro effects

8th March 2017
GCC Fiscal Policy & the Balance of Trade: Gulf States Issue Bonds in their Plans to Raise Debt as the Price of Oil Falls

28th April 2016
Video clip summaries of Osborne's March 2016 Budget

16th March 2016
Five Years As Chancellor: How Has George Osborne Fared?

17th March 2015
Key Decisions in the July 2015 Budget

9th July 2015

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Budget Deficit

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