Answer
A government could run a budget deficit forever since the government could issue new bonds when old bonds are due and payable.
Work Step by Step
Also, a government could run a budget deficit forever since a government's debt could grow slower than the rate of nominal output.
Example: The inflation rate is 2%, while the output of the economy is 3%. This would mean that the nominal output of the economy is 5%. As long as the government budget deficit is less than than the nominal output of the economy (5%), then the government deficit policy is sustainable.
