Is Budget Deficit correctly measured? 2. Capital assets Government's assets and liabilities should be considered (capital budgeting) budget deficit change in liabilities- change in assets Hard to decide which expenditures should count as capital expenditures5 Is Budget Deficit correctly measured? 2. Capital Assets Government’s assets and liabilities should be considered (capital budgeting) budget deficit = change in liabilities - change in assets Hard to decide which expenditures should count as capital expenditures…