Budget deficit occurs when spending exceeds revenue during a period. FY 0 federal government spent $trillion and collected $trillion, creating deficit. U.S. has experienced four budget surpluses in last 50 years. Last federal surplus occurred in 2001
Deficit spending occurs when government spending exceeds revenue. Keynes first identified deficit spending as necessary economic tool. Government deficits can be intentional or unintentional
Government budget balance is the difference between revenues and spending. Budget surplus occurs when taxes exceed spending, deficit when spending exceeds taxes. Budget balance can be broken down into primary balance and interest payments
Budget deficit will rise from $1.6 trillion in 2024 to $2.6 trillion in 2034. 2020 deficit was $3.1 trillion, largest in U.S. history. National debt reached $33.2 trillion at end of 2023
Budget deficit occurs when government spending exceeds revenue. Budget surplus happens when tax revenues exceed spending. Cyclical deficit arises during economic downturns. Structural deficit persists regardless of economic cycle
CBRT lowered policy rate from 50% to 47.5%. Inflation expectations rose to 45.3% for 2024 and 27.2% for 2025. CBRT raised inflation forecasts to 44% for 2024, 21% for 2025, 12% for 2026