What is typically regarded as a consequence of prolonged budget deficits?

Prolonged budget deficits lead to higher national debt because when a government spends more than it earns in revenue, it must borrow money to cover the shortfall. This borrowing adds to the total national debt, as the government issues bonds and other debt instruments to finance its deficits. Over time, as these deficits accumulate, the national debt increases, reflecting a growing obligation for the government to repay borrowed funds, often with interest.

Higher national debt can have various implications for the economy, including potential increases in interest rates, as the government competes with the private sector for available credit. Additionally, a larger debt burden can affect future government spending, as more revenue may need to be allocated toward interest payments rather than essential services or investments in public goods.