<em><u>High government expenditures can lead to a bigger deficit.
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Further Explanations:
A deficit is defined as the extent to which a reserve falls short to the amount in which it is required. It usually occurs when an expense surpasses the revenues or imports exceed exports. Through deficit one can measure the economic health of the nation and can make out how an administration is managed. It lost helps to point out the unnecessary expense of any administration. In the case of income of an administration exceeds the expenditure then the budget of the government will be stated fiscal or surplus.
Expenditure of any government covers its investment and expenditure. Major sectors of the expenditure of any government are health and education. Too much expenditure on any of the sectors can result in a deficit situation but have future implications.
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Answer Details
Grade: High School
Subject: Economics
Chapter: Budget
Keywords:
deficit, expense surpasses,economic, health, administration, fiscal, surplus, investment, expenditure, health, education