Answer to Question #81176 in Macroeconomics for Ishani

Question

How to fing government expenditure from budget deficit

Answer 1

The budget deficit arises under the condition, when expenses precede incomes:
Revenues < Government expenditure = Budget deficit
Government expenditure include Government purchases and Transfers
To reduce the Budget deficit, it is necessary to either cut some Government expenditures, or increase Revenue-generating activities or use a combination of the two.