Answer: True.
A budget deficit occurs when <u>expenditures exceed revenue</u>. The government collects revenue mainly in the form of taxes. If the government spends more in a year than the money it has collected, it has a budget deficit. The difference needs to be obtained by borrowing money, normally in the form of government bonds.
If the government has budget deficits in separate years without being paid off, these start to accumulate. The accumulation of this borrowed money is what is called the national debt.
State<span> & Local </span>Government<span>. Powers not granted to the </span>federal government<span> are reserved for </span>states<span> and the people, which are divided between </span>state<span> and local</span>governments<span>. ... All </span>state governments<span> are modeled after the </span>federal government<span>and consist of three branches: executive, legislative, and judicial.</span>
