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4.5.3 Public sector finances
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Deficits and national debt

Deficits and national debt

Flow diagram showing an annual fiscal deficit adding to the national debt, an annual fiscal surplus reducing it, and the debt-to-GDP ratio comparing the debt stock with nominal GDP

A fiscal deficit occurs when government spending exceeds tax revenue during one year. It is a flow of new borrowing measured over a period.

4.5.3 Public sector finances Lesson

  1. A Level
  2. /Economics
  3. /4.5.3 Public sector finances

Step-by-step lessons covering Edexcel A A Level Economics 4.5.3 Public sector finances for A Level Economics. Each lesson works through exam-style questions in Paper 1, Paper 2 and Paper 3 format. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.