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(3)Howisitpossiblethatallthecountriesintheworldhavefiscaldeficit?Quora
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VietVu,MScEconomicsattheLondonSchoolofEconomics
WrittenFeb13,2013

Whataretheadvantagesofhavingafiscalsurplus
overadeficitinacountry'seconomy?

Itisnotthecasethatallthecountrieshaveabudgetdeficit.Somecountriesdo,infact,
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Howsoundistheprocessofprovidinggovernment
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Thatsaid,thebudgetdeficitisfinancedbyloans,eitherprivatelyorbyothergovernments.
Mostcommonformoftheloanisthetreasurybills.Manycountriescanrunadeficit
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Whichisabetterwaytoapproachthisyear'sbudget:
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Howdoesalargerfiscaldeficitleadtoaboostin
demand?

ApurvaAnilGodbole
WrittenMay21,2013

Whyisfiscaldeficitbadforthecountry?

Notethatallcountriescanhavefiscaldeficitlogically.Becauseotherthanthecountries
themselves,thereareothereconomicentitiesviz.theprivatesector.So,whenallcountries
havefiscaldeficit,itmeansthattheprivatesectorismakingthatmoney.
Ibelieveyourquestionis"Isitpossibleforallcountriestohaveatradedeficit?"The
answertothatwillbeNo.Becausethesetofallcountriesintheworldformstheuniversal
set.Theassumptionhereisthatalltheeconomicentitesthatwillbeincludedinthissetare
associatedwithonecountryoranother.

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Wheredothenationalgovernmentsborrowmoney
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AakashMaheshwari
WrittenAug5,2014

Fiscaldeficitisthenetgovernmentexpendituremorethangovernmentrevenue..now
fiscaldeficitshowsthattheeconomyisabsorbtiveinnature..thatistheeconomyisableto
absorbmoreandtherebyincreasingthepurchasingpowerofitseconomyand
people..henceitshowsthattheeconomyisgrowingandisproductiveinnature..henceall
countryshowsthatitishavingfiscaldeficitevenifitmaynotbethecaseso..
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