Hi! Thanks for the question.
Here is a good primer showing the main concepts of a structural and
cyclical budget deficit.
Structural Budget Deficit - "A structural budget deficit exists when a
country is operating at full employment, but its government still
spends more than it receives in tax revenues. In such a case, the
country is clearly living beyond its means..."
Cyclical Budget Deficit - "... a cyclical deficit is that portion of
the budget deficit that results when a country's economy is at less
than full employment, that is, in a recession. In such a case,
recessionary forces reduce tax revenues through lower income and
profit taxes."
"Good Deficit, Bad Deficit"
http://www.theglobalist.com/DBWeb/StoryId.aspx?StoryId=2307
Another article providing a good discussion about the two types of
deficits can be read on the link below.
?Battling the BUDGET DEFICIT b e a r? by PETER NAVARRO, PH. D.
http://www.peternavarro.com/documents/navarro-ti0902.pdf
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Regards,
Easterangel-ga
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