ECONOMETRIC STUDY OF STATE BUDGET DEFICIT: CAUSES AND SOLUTIONS

This article examines the multifaceted problem of government budget deficits, identifies their underlying causes, and proposes a number of solutions for sustainable fiscal management. It identifies economic downturns, structural imbalances, policy decisions, and unexpected expenditures as the main drivers of budget deficits. In response, it proposes a range of strategies to mitigate these deficits, including spending cuts, revenue increases, growth-enhancing initiatives, debt financing, public-private partnerships, and comprehensive budget reform. Through a balanced approach that includes both immediate corrective measures and long-term preventive measures, the article emphasizes the importance of both fiscal discipline and strategic investment in addressing budget deficits. This analysis aims to provide policymakers, economists, and the public with insights into how to manage public finances effectively, ensure economic stability, and ensure citizen well-being. KEY WORDS: Budget revenues, expenditures, budget deficit, economic decline, structural changes, cost reduction, revenue increase, fiscal discipline, strategic investment, inflation, economic growth, interest rate, exchange rate.