Do people need to worry about the fiscal deficit?

To understand this we need to look back past decade's history of the US economy. For example, if you look at the Growth, unemployment, and inflation data from 1980–2013, you will see some negative values, especially in the years 2008 and 2009. Those negative values most of them are deficits. Apart from unemployment, the most serious macroeconomic problem that might face a country is its very large budget deficit.

Now, what is a fiscal deficit? We general people usually do not understand this term. The fiscal deficit is the difference between total revenue and total expenditure of the government. So, what will happen if the fiscal deficit value becomes negative(expenditure is greater than total revenue)? Simply it will increase the government's debt. In short run, it's not a problem because government can borrow money form their respective central banks but over the long run, it can be the cause of the debt burden, rising the interest costs, stagflation etc.

So, to flourish an economy the governments shouldn't over look the fiscal deficit for its no impact in the short runs but they should keep it in check for the long runs.

Thanks for reading my posts and let me know your opinions in the comments.

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@shahriar33