If revenues are greater than spending, the result is a surplus. But if government spending is greater than tax collections, the result is a deficit. The federal government then must borrow money to fund its deficit spending”. Tucker, Jasmine: Citing Sources: (https://www.nationalpriorities.org/borrowing).
Why Does the Federal Government Borrow?
“The size of a budget deficit in any given year is determined by two factors: the amount of money the government spends that year and the amount of revenues the government collects in taxes. Both of these factors are affected by the state of the economy as well as by the tax and spending policies made each year in the federal budget process”. Tucker, Jasmine: Citing Sources: (https://www.nationalpriorities.org/borrowing).
1. Delay maintenance and replacement of assets and rely