Final answer:
The government budget is determined by the balance between revenue and spending. Budget deficits can be made up through borrowing.
Step-by-step explanation:
The government budget is determined by the balance between revenue, which is the money the government receives from taxes and other income sources, and spending, which is the money the government allocates to various activities and programs. When revenue exceeds spending, the government has a budget surplus, and when spending exceeds revenue, the government has a budget deficit. In the case of a budget deficit, the government can make up the difference through borrowing, by issuing bonds or borrowing from other countries or institutions.