Skip to main content



What Is Written Here Is Not Investment Advice. It has been published on this page to explain the terminology used with explanations about the stock market, digital currencies, economy, finance and investment instruments.

🔍Deficits and debts economics lecture summary

In this article, we will summarize the subject of deficits and liabilities for an economics course. Deficits and debts are important indicators of a country's public finances. Deficits occur when a country's revenues are less than its expenses. Debts, on the other hand, are loans taken by a country to cover its deficits.

Causes and consequences of deficits

Reasons for the deficits include:

- Increase public spending to stimulate economic growth

- Decrease in tax revenues or widespread tax evasion

- Increase in social security and health expenditures

- Increase in defense and security spending

- Providing emergency assistance in natural disaster or crisis situations

The consequences of the deficits are:

- Increasing debt stock and interest burden

- Deterioration of budget discipline and loss of confidence

- Rising inflation and exchange rate pressure

- Decrease in investment and savings rates

- Increasing dependence on external financing

Types and management of debts

Types of debts can be classified as:

- Domestic debt: A country's debt to its own citizens or institutions. It is usually issued in the form of government bonds or treasury bills.

- Foreign debt: It is the debt given by a country to foreign countries, organizations or individuals. Usually paid in foreign currency.

- Public debt: It is the total debt of a country's central government, local government and social security institutions.

- Private debt: It is the debt of a country's private sector entities or households.

Debt management is for the following purposes:

- Maintaining the debt stock at a sustainable level

- Having a suitable structure in terms of maturity, interest and currency of the debt

- Using debt to support economic growth and stability

- Reporting the debt in a transparent and accountable manner


You can find all explanations about the economy on our page.


Finance&Exchange&Digital Money

Economics Education

Most Wanted

Tüm Haberler

Piyasalara Genel Bakış

Kripto Para Analiz ve Görüşleri

Döviz Analiz ve Görüşleri