Final answer:
When the government's outlays exceed its tax revenues, it creates a budget deficit, leading to an increase in the national debt. The deficit needs to be covered by borrowing money, which adds to the debt. As the debt increases, interest payments rise, causing the deficit to grow even with constant government spending.
Step-by-step explanation:
When the government's outlays exceed its tax revenues, it creates a budget deficit. The budget deficit represents the difference between how much money the government spends and how much money it collects in taxes. To cover the deficit, the government needs to borrow money, which adds to the national debt. As the national debt increases, so do the interest payments, leading to a growing deficit even if other government spending remains constant.