A budget deficit is a term used in public finance to refer to a situation when a state raises more resources than what they spend in a given financial year. A surplus budget is an indicator that a country is being managed well.
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A large number of African countries are struggling with public debt. Therefore, these countries end up spending more than they can raise form taxation and national investments. The difference between expenditure and revenues is raised through borrowing and donor funding. This is a deficit budget. It is very common.
There are very few African countries with a surplus budget.
- Libya (2012)
- Botswana
- Seychelles
- Lesotho
These are frugal governments which do not borrow money from foreign nations for lining private pockets.
Source: Worldatlas
