budget deficit
Revenue falls short
A budget deficit occurs when spending exceeds revenue over a given period—typically a fiscal year.
Governments run deficits when tax receipts fall short of expenditures: The federal budget deficit grew to $1.7 trillion.
Deficits are financed through borrowing, adding to accumulated debt.
The opposite is a budget surplus.
Government's accumulated borrowing
- sovereign debtMoney governments owe creditors
- fiscal policyState spending and taxation
- treasury bondsGovernment-issued debt securities
- government bondsState-issued debt securities
debt ceiling · public debt · debt-to-GDP ratio · fiscal cliff · debt servicing · appropriations · omnibus bill
Prolonged economic decline
- inflationSustained price level increase
- GDPNational output abbreviation
- macroeconomicsStudy of aggregate economies
- austerityEnforced economic stringency
stimulus · quantitative easing · economic growth · deflation · credit rating · liquidity · monetary policy · interest rates
Compulsory government revenue collection
- tax policyRevenue collection framework
- value-added taxIncremental consumption levy
- income taxGovernment charge on earnings
- corporate taxLevy on company profits
tariffs · revenue collection · underfunding · sequestration · spending caps · means testing · tax base
Temporary taking of another's
- creditorOne owed money
- indebtednessState of owing money
- liabilityLegal or financial obligation
- loanBorrowed money repaid later
interest payments · debt financing · bond market · debt burden · debt restructuring · insolvency · creditworthiness · downgrade
Money paid out
- outlaysMoney paid for something
- appropriationsDesignated funds for purposes
- disbursementsPayments made from funds
- defense spendingGovernment outlay for armed forces
social programs · entitlement programs · mandatory spending · discretionary spending · infrastructure · subsidies · grants · procurement
national debt
Government's accumulated borrowing
- sovereign debtMoney governments owe creditors
- fiscal policyState spending and taxation
- treasury bondsGovernment-issued debt securities
government bonds · debt ceiling · public debt · debt-to-GDP ratio · fiscal cliff · debt servicing · appropriations · omnibus bill
recession
Prolonged economic decline
- inflationSustained price level increase
- GDPNational output abbreviation
- macroeconomicsStudy of aggregate economies
austerity · stimulus · quantitative easing · economic growth · deflation · credit rating · liquidity · monetary policy · interest rates · bond yields
taxation
Compulsory government revenue collection
- tax policyRevenue collection framework
- value-added taxIncremental consumption levy
- income taxGovernment charge on earnings
corporate tax · tariffs · revenue collection · underfunding · sequestration · spending caps · means testing · tax base
borrowing
Temporary taking of another's
- creditorOne owed money
- indebtednessState of owing money
- liabilityLegal or financial obligation
loan · interest payments · debt financing · bond market · debt burden · debt restructuring · insolvency · creditworthiness · downgrade
expenditure
Money paid out
- outlaysMoney paid for something
- appropriationsDesignated funds for purposes
- disbursementsPayments made from funds
defense spending · social programs · entitlement programs · mandatory spending · discretionary spending · infrastructure · subsidies · grants · procurement · welfare
- public financestreasury bonds, treasury notes, exchequer, public funds, public accounts
- EU Fiscaleurozone, European Central Bank, European Commission, public debt, sovereign debt
- economicssupply and demand, inflation, GDP, GNP, gross domestic product
- economyGDP, money, inflation, inflation rate, GNP
- money troublesdebt relief, bad debt, bankruptcy filing, paycheck to paycheck, struggling
- economic policymonetary policy, tax policy, fiscal discipline, fiscal stimulus, fiscal restraint
budget deficitbudget surplus
Revenue exceeding outlays
surplus · fiscal surplus · profit · balanced budget · break-even
budget deficitsolvency
Capacity to pay debts
fiscal health · financial health · fiscal responsibility · financial stability · prosperity
budget, deficit, budgeting, budgeted, budgetary, deficits, balanced budget, budgeter, deficit spending