Give at least five characteristics of deficit budget and five benefits of a deficit budget.

Five characteristics of deficit budget are as follows:

1) Deficit budget is a deficit spending budget where the spending exceeds revenue.

2) Overall economic growth increases.

3) Deficit budget leads to raise the cost due to the excess expenditure lead to increased government taxes and this leads to inflation.

4) Higher the interest payment of the debt.

5) Useful during the recession which helps to stimulate the business, jobs, economic growth, and so on.

Five benefits of a deficit budget

1) Increases Aggregate demand.

2) Increases economic growth

3) Increases the employment generation.

4) Increase investment in the public sector.

5) Use of surplus savings at the time of recession.