BUDGET DEFICIT: STATE, CAUSES AND CONSEQUENCES

Abstract

The budget deficit is an acute problem of the development of the country's economy, in essence it has become a socio-economic phenomenon of many countries of the world, since it is due to the constant and prolonged growth of negative processes in the economy. In particular, the size of the budget balance affects the amount of aggregate demand and income, the price level, the state of the balance of payments. Recognition of the objectivity of the budget deficit in the conditions of market relations requires considering it as an objective economic category and studying the laws of its development. Recently, special attention has been paid to achieving stability in the development of the economy and the balance of the state budget in Kazakhstan. The deficit can be covered relatively easily by issuing government loans or issuing paper money. With a significant and chronic budget deficit, debts do not cover the needs of the state, which is provided by Additional (that is, outside the needs of commodity circulation) money emission, which leads to the development of inflation, violation of the laws of money circulation, depreciation of money, a decrease in real incomes and a decrease in the standard of living of the population.

The state is obliged to return borrowed resources. This imposes certain requirements on the choice of financing objects. When spending funds on investments, you need to be sure that they will pay off. At the same time, it is necessary to establish strict control not only over the use of funds directed to capital investments, but also over the income (profit) received from the investment

The article discusses the problems of the budget deficit, which is a complex financial and economic category, in which the relationship between the proportions of the budget system, the flows of state revenues are manifested and manifested. The budget deficit indicates an unstable situation in economic and financial activities.