Is there ever a sound economic reason for governments to spend more than they collect in taxes and borrow the difference

Question

Guest

Social Studies

22 February, 11:50

Is there ever a sound economic reason for governments to spend more than they collect in taxes and borrow the difference

+1

Answers (1)

Know the Answer?

Makhi Barr · Answer 1

Yes there is a sound economic reason for governments to spend more than they collect in taxes and borrow the difference. This need can happen when the government feels that a certain amount of investment will bring greater returns in the future and the people will also be benefited in the long run. The government can then get more tax from the people.