structural:scholar_edition, stylistic:tone, quality:correction
The deficit is less useful as an in indicator of fiscal stimulus

An advantage of measuring a government's fiscal balance (deficit or surplus) using its cash balance is that the cash deficit/surplus incorporates spending on capital, so it measures the demand from the government on the current resources of the economy: i.e., the net fiscal stimulus.: 10 By contrast, the accrual-accounting based deficit/surplus measures just the net operating balance. By including government expenditure on capital, the cash accounting deficit/surplus is a better indicator of the government's demand for resources and, therefore, its impact on the resources available to the private sector.: 4 A Norwegian government study argues that a jurisdiction using cash-based budgeting is better positioned to engage in countercyclical fiscal policy since there is a direct link between budget allocations and actual cash flows.: 123