If the government runs a budget deficit, then

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When the government runs a budget deficit, it spends more than it collects in taxes. This shortfall in revenue can be financed by borrowing from households, businesses, or foreign entities. Therefore, part of household and business saving finances the deficit. However, it is also possible for the government to finance the deficit through printing money or issuing bonds, which would lead to higher inflation or debt payments in the future. It is important to note that a budget deficit does not necessarily mean that national saving is negative, as it depends on the balance between public and private saving.

If the Government Runs a Budget Deficit, Then