Can High Government Expenditures Lead to a Bigger Revenue, Stimulus, Deficit, or Surplus?

High government expenditures can often lead to a bigger deficit. When a government spends more than it collects in revenue, the difference is covered by borrowing, which results in a deficit. Though increased spending can stimulate economic activity and, in some cases, lead to higher revenue in the long term, the immediate effect of high expenditures without matching revenue typically results in larger deficits.