In: Others What is the impact of budget deficit on economic growth and employment? What is the impact of budget deficit on economic growth and employment? 1 Answer Khizer 1 Question 6 Answers 0 Best Answers 30 Points View Profile Khizer Added an answer on August 30, 2020 at 12:31 pm When the government is in the budget deficit. at that time government borrow money from various sources. The government wants to spend more money in economy than its income for the more development of the economy and to generate more employment. But in the end, the government needs to pay interest to the borrowed amount. So, It creates short term of employment If the government does this every year then it is bad for the economy and employment. 0 Reply Share Share Share on WhatsApp Share on Facebook Share on Twitter Share on LinkedIn Sorry, you do not have a permission to answer to this question.