Please explain in details Whether or not deficits create a b

Please explain in details:

Whether or not deficits create a burden depends on how and why the government incurred the deficits in the first place. Explain.

Solution

This statement is true. How because it determines whether it is burden in reality or not. E. G quite often domestic debt is not considered a burden because both those who pay tax and those who receive interest from public debt are domestic citizens. On the other if the same tax was raised abroad most economists will consider it a burden. But even then rate of interest on foreign and domestic debt matter. Similarly why Govt incurs debt is important to determine burden of debt. E. G debt incurred for Iraq war is a real burden as this war was not too important for nation. On the other hand debt used to promote industrialisation, more jobs, growth is not considered too much burden. Similarly when economy needs fiscal expansionary policy badly the expenditure will not be considered a problem