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  • Government Budget Deficit

Government Budget Deficit Formula

The government budget deficit is calculated by subtracting total tax revenue from the sum of all government spending. The formula for the budget deficit is:

Budget Deficit=(Spending on goods and services+Government fixed investment+Transfers+Interest payments)−TaxationBudget\ Deficit = (\text{Spending on goods and services} + \text{Government fixed investment} + \text{Transfers} + \text{Interest payments}) - \text{Taxation}

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References

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Economics

Economy

Introduction to Macroeconomics Course

Ch.5 Macroeconomic policy: Inflation and unemployment - The Economy 2.0 Macroeconomics @ CORE Econ

The Economy 2.0 Macroeconomics @ CORE Econ

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