According to the government budget constraint, any excess of public expenditures and transfers over taxes and user fees must be funded by

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The government budget constraint states that Public Expenditures + Transfers > Taxes + User fees. This means that there is a deficit, which must be financed through government borrowing. Private borrowing could be an option; however, it is not a viable long-term solution for financing government spending. U.S. Treasury money creation and Federal Reserve money creation are not considered viable options as they could lead to inflation and devalue the currency.

According to the Government Budget Constraint, Any Excess of Public