BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The national debt is the amount of money the federal government has borrowed to cover the outstanding balance of expenses incurred over time. In a given fiscal year (FY), when spending (ex. money for roadways) exceeds revenue (ex. money from federal income tax), a budget deficit results.

Detailed explanation-2: -Understanding the National Deficit In FY 2022, the federal government spent $6.27 trillion and collected $4.90 trillion in revenue, resulting in a deficit. The amount by which spending exceeds revenue, $1.38 trillion in 2022, is referred to as deficit spending.

Detailed explanation-3: -To pay for government programs while operating under a deficit, the federal government borrows money by selling U.S. Treasury bonds, bills, and other securities.

Detailed explanation-4: -In this report, the Congressional Budget Office describes its projections of the federal budget and the U.S. economy under current law for this year and the decade that follows. The deficit is projected to total $1.4 trillion in 2023; annual deficits average $2.0 trillion over the 2024–2033 period.

Detailed explanation-5: -If there is a budget deficit, the government can finance it through taxation, borrowing, or printing money. When a government borrows from its central bank or prints money to fill the gap between its income and expenditure, it is called deficit financing.