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S treasury must sell new bonds to pay for a deficit

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Unformatted text preview: Federal Budgeting • A Balanced Budget : Revenues = Expenditures • A Budget Surplus: Revenues > Expenditures • A Budget Deficit: Revenues < Expenditures Debt – accumulation of Budget Deficits The Definition of Debt and Assets • Debt is accumulated deficits minus accumulated surpluses Debt is a stock measure, defined at a point in time • Deficits and surpluses are flow concepts, defined for a period of time usually a fiscal year • If a country has more surpluses than deficits, the accumulated surpluses minus accumulated deficits are a part of its assets • The U.S. Treasury must sell new bonds to pay for a deficit and refinance previously issued bonds as they come due Debt Management • - - - - - Debt, as a summary...
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