The mechanism for transferring the impact of the deficits and surpluses in the public budget to the balance of payments

Abstract

The purpose of this paper is to clarify how the general budget (surplus or deficit) impacts diverse sorts of economic activity both inside and outside the nation, including the balance of payments as one of the key economic indicators to comprehend a nation's economic reality with other countries. Numerous studies have been conducted at various levels and for various economies in light of the general budget's significance in economic life and its impact on numerous economic variables, particularly the balance of payments. This study differs in several ways from previous studies in that it builds its approach on linking strategies for dealing with the balance of payments with the public budget and the use of a presentation of that relationship through many equations and illustrative charts. The study supports the research hypothesis through descriptive analysis.