The Relationships between Budget Deficits, Surplus and National Debt

In this lesson we distinguish between the different situations a government’s budget may be in and explain how the level of national debt is determined by past years’ budget balances.

We will examine several case studies within Europe and outline the circumstances under which government debt is considered to be a burden and when it is not, according to the terms outline in the European Union’s Stability and Growth Pact


Share this lesson!