Question

Discuss the main causes of budget deficits in a Caribbean country of your choice.

Discuss the main causes of budget deficits in a Caribbean country of your choice.

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Answer #1

Budget deficit occurs when a government expenditure exceeds it's collection in taxes. The fundamental causes are the shifts in macro economic such as slower growth in productivity, increasing structural unemployment; volatile inflation, together these factors have driven revenues of government of a Caribbean country well below targets projected during budgets. Moreover it occurs due to the Caribbean Government inefficiency as well as the demographic pressures.

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