In 2015, an article in the Wall Street Journal noted that "Prime Minister Shinzo Abe is expected to unveil a plan to balance Japan's budget in five years ... as a step toward reducing the country's debt burden, according to government officials." What is the connection between the government's budget deficit and its debt? If the debt is a "burden," briefly explain what it is a burden on.

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Caitlin Morton

14 August, 04:29

In 2015, an article in the Wall Street Journal noted that "Prime Minister Shinzo Abe is expected to unveil a plan to balance Japan's budget in five years ... as a step toward reducing the country's debt burden, according to government officials." What is the connection between the government's budget deficit and its debt? If the debt is a "burden," briefly explain what it is a burden on.

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Camryn Arias · Answer 1

Debt is the Total Budget Deficit of a Government

Explanation:

A budget deficit occurs when a government budgets more expenditure than the available revenue over a specific period of time.

The budget deficit is the addition of the current year's deficit to the previous debts owed.

Government debt is the total outstanding loans owed by the government at any time in the past and not yet repaid.

A debt is a burden on the budget as it keeps increasing the budget deficit.