Structural Causes Of A Budget Deficit

Question 1

What structural problems lead to a deficit

Answer 1

• tax avoidance/evasion
• wealth/income inequality
• ageing population-demographic
• government inefficiency (value)
• high subsidisation and financial support

Question 2

What will happen to the budget deficit in a boom/recovery

Answer 2

Not disappear

Question 3

Which countries may worsen quicker

Answer 3

Countries who depend heavily on tex from specific industries, when the revenues and profits suffer

Question 4

In many lower income countries…

Answer 4

… import tariffs are an important source of revenue

Question 5

Primary budget deficit=

Answer 5

The budget deficit before interest payment and national debt are added to the figure