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Stock, flow, and the key ratio

Stock, flow, and the key ratio

Flow diagram showing government revenue and spending feeding into the yearly budget balance, with deficits raising public sector debt and surpluses potentially lowering it, plus the debt-to-GDP ratio formula A budget or fiscal deficit is the gap when government spending exceeds government revenue in a single year. Public sector debt is the accumulated stock of past borrowing still outstanding.

Control of the national (public sector) debt Lesson

  1. A Level
  2. /Economics
  3. /Control of the national (public sector) debt