Excessive government budget deficits can cause problems like inflation, high interest rates, and debt crises. How the deficits are financed and the time it takes for their effects to show up matter. Small deficits can be managed without causing these issues. To know if a country's fiscal policy is sustainable, we need to look at how much debt it has compared to its economic output. Faster economic growth makes it easier to handle deficits. Big budget deficits can harm a country's economy and slow down its development.