There are some situations in which running a budget deficit is justifiable.

Question

Quizplus · Accepted Answer

Running a budget deficit may be justifiable during times of economic recession or crisis, when increased government spending can help stimulate the economy and create jobs. Additionally, investing in long-term infrastructure projects or research and development initiatives may also warrant running a deficit in the short term. However, it is important for governments to balance their budgets over the long term to avoid unsustainable levels of debt.

There Are Some Situations in Which Running a Budget Deficit