Beneficial Justifications for Government Borrowing

Imagine a country's government has planned expenditures totaling $1.2 trillion for the next fiscal year. However, its projected revenue from all forms of taxation is only $950 billion. To proceed with its spending plans without immediately changing tax laws, what is the most direct financial action the government must undertake to cover the shortfall?

Government Response to Economic Downturn

The Rationale for Government Borrowing

If a government's planned spending for a year is higher than its expected tax collections, its only option to cover the difference is to raise taxes.