By Okware Emmanuel
Governments worldwide have adopted chronic deficit spending, overspending tax revenues and borrowing excessively, leading to persistent budget deficits (e.g., UK 3.7% of GDP on average 2015–2024, US about 6.7% in FY2024, Uganda 4.1%). This practice inflates national debt, diverts an increasing share of tax revenue to interest payments, crowds out private investment, and burdens future generations. Rooted in a departure from basic arithmetic principles that prohibit spending beyond available resources, deficit spending can be curtailed through fiscal discipline, such as reducing government size and expenditure, as exemplified by Argentina’s rapid shift to surplus under President Milei.
No responses yet