Page 128 - Macroeconomics. book docx_Neat

- Low tax revenues

- Economic recessions

- Rising public wages and subsidies

- Weak tax administration

Effects of Budget Deficit

- Increase in public debt

- Inflationary pressures

- Crowding out private investment

- Burden on future generations

Ways to Reduce Budget Deficit

- Increasing tax revenues

- Reducing unnecessary spending

- Improving tax efficiency

- Economic growth

5. PUBLIC AND EXTERNAL DEBT

Meaning of Public Debt

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