Previous Page

Budget deficit

AnalyticsTrade Team
AnalyticsTrade Team Last updated on 26 Apr 2023

Table of Contents

Budget Deficit

A budget deficit is when a government spends more money than it takes in from taxes and other sources of revenue. This means that the government has to borrow money to cover the difference. A budget deficit is the opposite of a budget surplus, which is when a government takes in more money than it spends. Budget deficits can be caused by a variety of factors, including economic downturns, wars, and government spending on social programs.

History of Budget Deficits

The concept of budget deficits has been around since the early days of government. Ancient Greece and Rome both had budget deficits, and the concept has been used by governments throughout history. In the modern era, budget deficits have become more common as governments have taken on more responsibility for providing services to their citizens. In the United States, budget deficits have been a regular occurrence since the 1970s.

Comparison of Budget Deficits

Country Budget Deficit (in % of GDP)
United States 3.7%
United Kingdom 2.3%
Japan 7.2%
Germany 0.7%
France 3.4%

Summary

A budget deficit is when a government spends more money than it takes in from taxes and other sources of revenue. This means that the government has to borrow money to cover the difference. Budget deficits can be caused by a variety of factors, including economic downturns, wars, and government spending on social programs. For more information on budget deficits, you can visit the websites of the International Monetary Fund, the World Bank, and the U.S. Treasury Department.

See Also

  • Budget Surplus
  • National Debt
  • Tax Revenue
  • Government Spending
  • Fiscal Policy
  • Monetary Policy
  • Debt Ceiling
  • Deficit Spending
  • Government Borrowing
  • Public Debt

Do you like the post? Share it now:

AnalyticsTrade Team

AnalyticsTrade Team

🎉 Introducing AnalyticsTrade's exceptional team of expert analysts! 🌟 These seasoned pros have been dominating the capital market, trading a diverse range of assets for more than 15 years! 📈💹 Get ready to level up your game with our top-notch, captivating resources in the capital market! 🚀📚

Was this article helpful?

X

Thank You for Contacting Us!

Your email has been successfully submitted and we will get in touch with you shortly