<Li> Consumption of fiscal reserves </Li> <Li> Sale of fixed assets (e.g., land) </Li> <P> A fiscal deficit is often funded by issuing bonds, like treasury bills or consols and gilt - edged securities . These pay interest, either for a fixed period or indefinitely . If the interest and capital requirements are too large, a nation may default on its debts, usually to foreign creditors . Public debt or borrowing refers to the government borrowing from the public . </P> <P> A fiscal surplus is often saved for future use, and may be invested in either local currency or any financial instrument that may be traded later once resources are needed; notice, additional debt is not needed . For this to happen, the marginal propensity to save needs to be strictly positive . </P>

Elaborate economic growth as an objective of government budget