Why would the government voluntarily allow a fiscal deficit? (Analytical Opinion)

A fiscal deficit is a shortfall in a government's income compared with its spending. The government that has a fiscal deficit is spending beyond its means. A fiscal deficit is calculated as a percentage of gross domestic product (GDP), or simply as total money spent in excess of income. In either case, the income figure includes only taxes and other revenues and excludes money borrowed to make up the shortfall.

The government would voluntarily allow a fiscal deficit in order to drive economic growth. Most governments prefer to finance their deficits instead of balancing the budget. Government bonds finance the deficit. Most creditors think that the government is highly likely to repay its creditors.

That makes government bonds more attractive than riskier corporate bonds. As a result, government interest rates remain relatively low. Politicians and policymakers rely on fiscal deficits to expand popular policies, such as welfare programs and public works, without having to raise taxes or cut spending elsewhere in the budget. In this way, fiscal deficits also encourage rent-seeking and politically motivated appropriations. Many businesses implicitly support fiscal deficits if it means receiving public benefits.

What do you think or do you have any other suggestions regarding this? I would be happy to know and learn more if possible.

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