What is the government budget balance?
The government budget balance is the difference between what a state collects and what it spends. A positive balance indicates a surplus while a negative balance signals a deficit.
Questions about Government budget balance
Short answers, pulled from the story.
When did the U.S. federal deficit reach 8.6% of gross domestic product?
In 2011, the U.S. federal deficit reached approximately 8.6% of gross domestic product. This figure represents a flow variable measured over one year rather than a stock accumulated at a specific moment.
Who developed the framework used to analyze national economic balances today?
British economist Wynne Godley developed the framework used to analyze these national economic balances today. Financial journalist Martin Wolf analyzed how private sector shifts forced government deficits in the early 2000s using this approach.
How does the Budget Control Act of 2011 affect discretionary spending?
The Budget Control Act of 2011 established caps on discretionary spending to reduce the federal deficit by $2.1 trillion over ten years. These measures led to reductions in defense and domestic program funding across multiple agencies.
What happened to Cypriot banks during the Greek debt crisis restructuring event?
During the Greek debt crisis, a haircut cancelled part of the debt in 2011 but caused banking crises elsewhere. Cypriot banks lost 5% of their assets during this specific financial restructuring event.