(Answered) What is the difference between a budget deficit and a budget surplus?What is the difference between…

➤ When does a deficit become harmful to economic stability?
A deficit becomes harmful when it pushes debt to unsustainable levels, forces sharp tax hikes, or crowds out productive private investment. Persistent structural deficits, rising interest costs, or loss of investor confidence can trigger fiscal stress. Analysts watch debt-to-GDP, borrowing costs, and growth prospects to assess sustainability.