195k views
4 votes
In 1 or 2 sentences, explain how a government pays for expenses that are more than its revenues

User XIsra
by
6.0k points

2 Answers

3 votes
The government pays for expenses that are more than its revenues by collecting taxes from its citizens. Another way is by borrowing money from other countries.  Thank you for posting your question. I hope this answer helped you. Let me know if you need more help. 
User MarcWan
by
6.2k points
5 votes
The government collects taxes in different categories such as income, sales, and property tax. When the taxes collected are insufficient for the expenses, the government is forced to borrow money in the form of treasury bills or bonds issued with interest paid to the holders.
User JkShaw
by
6.3k points