Littleland need to borrow [tex]\bold{\$300}[/tex] million in 2010 to finance its government spending.
Explanation:
Budget deficit = Total spending + Total earning
Total spending = Education + Welfare and Social Security + Healthcare + Defense + Payments on debt + Other=[tex]320+890+270+120+172+240[/tex]
Total revenue = Income tax + Sales tax + Corporate tax + Social insurance= [tex]800+270+300+340[/tex]
Budget Deficit[tex]= 2010-1710=300[/tex]
Therefore, making it 300 million dollar that is budget deficit of Littleland in 2010 was [tex]\$300[/tex] million. This means spending of Littleland in 2010 exceeds its revenue for 2010 by [tex]\$300[/tex] million.
Budget deficit means a government has deposited more money and bonds into private holdings than it has removed in taxes, over the course of some time range.
