Some of the most important ideas regarding budget are stated and briefly illustrated below:
In case there is a prolonged accumulation of Budget Deficit for several years or centuries, it gives birth to an economic phenomenon called Government Debts. When a country suffers from Government Debts, a considerable portion of the government spendings are then used for the repayment of these debts, having certain maturity. This maturity however, can be re-funded through issuing government bonds. In fact, Budget Deficit is regarded as a flow, while the Government Debts are considered to be stocks. Government Debts are just a aggregate flow of the Budget Deficits.
The definition of budgetary deficit essentially follows from that of the Governmental Debt. While the Government Debts are defined as the total amount of money owned by the government, Budget Deficit indicates the amount by which a savings escalates or a Government Debt grows.
The case is somewhat different in a Parliamentary form of government, where the rise of conditions like loss of supply leads to resignations and making of new elections. This however, makes a Budget Crisis to attain the form of a lengthy disagreement and argument.
Budget Crisis also emerges when the legislature possesses a suspension date authorized by the country's Constitution, and the financial budget is not passed till the date specified.