Question

What does deficient spending require government to do

Answer 1

The deficit spending requires the government to take on debt.

Explanation:

The main source that the government relies on to support its expenditure is the revenue that it collects through various means. But when the expenditure exceeds the revenue available, the government has to take debts to support its schemes and operations.

These debts provide for the required funds to maintain the continuity of the progressive government operations without having to bring them to a stop due to the unavailability of funds.

Answer 2

Answer:

Deficit spending or a budget deficit requires the government to finance excess spending over revenue and this is financed by the government debts. The government needs to take on the debts either from domestic international sources to pay for those excess spending.

Explanation: