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Originally Posted by Yakk
That would make sense, if having a deficit was an unplanned shortfall.
In the lingo of government accounting, deficits are increases to the debt.
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This is definately true, not doubt about it.
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Originally Posted by Yakk
Surpluses are decreases to the debt.
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This is not always true. There is always discussion about what to do with the surplus. It is not, unfortunately applied against the debt.
Also, couldn't the government just over budget so that they always come under and have a surplus?
No, that would be wrong. Why tax us more then they need to tax us.
A surplus means they taxed us too much.
It is incorrect to think that a surplus is good.
Any government who has a surplus wants you to think it is good.
They should plan to pay down the debt and it should be part of the governments platform (or policy). Paying down the debt should be worked into the budget so that they know how much revenues to collect.