Debt is Flow which adds to Stock of Debt. Explain

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Is Debt and Deficit Stock or Flow? Stock It is a variable which is measured at Particular point of time Flow It is a variable which is measured Defined over a period of time Example Debt Example Deficit Debt as on 31 March 2021 Deficit for year 2020-21 Particular Point of time as on 31 March 2021 (STOCK) Transactions for the Period 1 Apr 2020 to 31 Mar 2021 (FLOW) Deficit is a Flow which adds to Stock of Debt Deficit is Flow because it is measured for Period of time 2020-21 Debt is a Stock because it is measured at a particular point of time (31-Mar-21) What happens in case of Deficit? In case of Deficit Expenditure more than Receipts To cover the gap Government Borrows This increases Debt More the deficit More the debt So deficit increases Debt We say Deficit is a flow which increases Stock of Debt Example- Why More the deficit, More the Debt Expenditure Receipts Deficit To meet deficit Govt takes loan Earlier Now 2000 2000 1500 1400 500 600 500 600 Note if Deficit increases from 500 to 600 Debt increases from 500 to 600 Hence, More the Deficit, More the Debt