Definition(s)
A deficit is the difference between expenditures and incomes, that is, between spending (outflows) and revenues (inflows). Deficit is deemed to be the opposite of surplus, that is, a negative balance between the two flows.
Debt is the total outstanding borrowing of an entity. Debt can be internal (owed to public and private lenders within the country) and external (owed to foreign lenders). Debt is linked to both an overall redistributive purpose (welfare policies) and the monetary base management (monetary policies) (Biondi 2016a).
Deficit and debt figures are determined through governmental accounting and national accounting systems. Deficit and debt figures are affected by (1) the specific definition of deficit or debt used; (2) the criteria used to define the scope of the accounting/reporting...
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Boisseau-Sierra, M. (2016). Accounting for Public Debt and Deficit. In: Farazmand, A. (eds) Global Encyclopedia of Public Administration, Public Policy, and Governance. Springer, Cham. https://doi.org/10.1007/978-3-319-31816-5_2294-1
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