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A-level Economics question

Hey,

I am revising for a test and am confused about how reducing government spending and increasing taxes will reduce the budget deficit?

Please could someone help. Thanks!
Original post by Mentor05
Hey,

I am revising for a test and am confused about how reducing government spending and increasing taxes will reduce the budget deficit?

Please could someone help. Thanks!

Budget deficit: government revenue < government expenditure

Reducing government spending: reducing expenditure

Increasing taxes: increasing revenue

Reducing expenditure + increasing revenue = reducing budget deficit

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