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Karo-lina-s [1.5K]
3 years ago
6

An​ "excessive" budget deficit in this context is

Business
1 answer:
rjkz [21]3 years ago
6 0

Answer:

A) A relatively large budget deficit as a percentage of GDP beyond the European​ Union's deficit and debt rules.

Explanation:

A budget deficit is when the governments have more expenditures in a budgeted year than they have the revenues in form of taxes and other incomes. A deficit is excessive if it is large in comparison to the GDP.

In the European Union the budget deficit is considered excessive if it exceeds 3% of the running years GDP.

A public debt percentage to GDP of 60% or above is considered excessive as most of the GDP then is used for debt servicing and thus impacts negatively on the financial health of the country.

Hope that helps.

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