Map of Frankfort

Map of Frankfort on This new borrowing is then added on to the existing debt. Most of this debt is securitized in government bonds. Government expendi- 194 debt tures thus usually have two components: government spending on goods and services, and interest payments on outstanding debt. The difference between government revenues and spending on goods and services is called the primary deficit (or surplus). Although some of the short term financing of government expenditures is due to a mismatch between the timing of the receipt of revenues (collection of taxes) and outlays (salaries and wages, and transfers), government deficits typically arise due to national emergencies, fluctuations in the government revenues, and spending over the business cycle, and government’s desire to smooth taxes. National emergencies include wars and natural disasters, which are temporary events. Under such circumstances government expenditures tend to increase and revenues may decline. Map of Frankfort 2016.

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Map of Frankfort

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