Cyclically adjusted deficit

Cyclically adjusted deficit,

Definition of Cyclically adjusted deficit:

  1. A projection of the governments budget deficit assuming the economy is at a normal level of activity. This is done by presupposing that consumer spending and taxes remain unchanged however, it does not take into account the effect of the change in national income to costs of government debt or that the budget deficit itself is a government policy.

Meaning of Cyclically adjusted deficit & Cyclically adjusted deficit Definition