When the US economy is not well, every country in the world will feel its impact. It’s just a matter of how big or how small. Well, their budget deficits are going up and has reached a new high.
According to AI overview by google, this is budget deficit definition. “A budget deficit occurs when a government spends more money than it receives in revenue during a specific period of time. The amount by which spending exceeds revenue is called deficit spending”
Briefly, the government is spending more than the revenue it gets, so it has to borrow to cover this amount and thus it’s in a deficit.
