What Is a Budget Deficit ?

 Budget Deficit 

A budget deficit occurs when expenses exceed revenue and indicate the financial health of a country. The government generally uses the term budget deficit when referring to spending rather than businesses or individuals. Accrued deficits form national debt. Budget Deficits Explained In cases where a budget deficit is identified, current expenses exceed the amount of income received through standard operations. A nation wishing to correct its budget deficit may need to cut back on certain expenditures, increase revenue-generating activities, or employ a combination of the two. Key Takeaways  A budget deficit happens when current expenses exceed the amount of income received through standard operations.  Certain unanticipated events and policies may cause budget deficits.  Countries can counter budget deficits by raising taxes and cutting spending.