Budget Deficit
Budget deficit — the amount by which government expenditure exceeds income from taxation, customs duties, etc., in any one fiscal year.
A budget deficit occurs when expenses exceed revenue and can indicate the financial health of a country. The term is commonly used to refer to government spending rather than businesses or individuals.
Budget deficits affect the national debt, the sum of annual budget deficits, and the cumulative total a country owes to creditors.
When a budget deficit is identified, current expenses exceed the income received through standard operations. To correct its nation's budget deficit, often referred to as a fiscal deficit, a government may cut back on certain expenditures or increase revenue-generating activities.
A budget deficit can lead to higher borrowing, higher interest payments, and low reinvestment, which will result in lower revenue during the following year.
Collins. Retrieved from: https://www.collinsdictionary.com/dictionary/english/budget-deficit https://economictimes.indiatimes.com/definition/budgetary-deficit
Adam Barone. (2022). Budget Deficit: Causes, Effects, and Prevention Strategies. Investopedia. Retrieved from: https://www.investopedia.com/terms/b/budget-deficit.asp