Deficit

A deficit is the amount by which a budget, account, or other financial statement falls short of the desired or expected amount. A deficit is the opposite of a surplus.

In government finance, a deficit is the amount by which government spending exceeds government revenue. A government deficit can be financed by borrowing from the public through the sale of government bonds, or by printing money.

Government deficits can be caused by a number of factors, including economic recession, war, or increased government spending. Government deficits can have a number of negative consequences, including increased government debt, higher interest rates, and inflation.

In personal finance, a deficit is the amount by which a person's spending exceeds their income. A personal deficit can be caused by a number of factors, including job loss, medical expenses, or increased spending. Personal deficits can have a number of negative consequences, including debt, financial stress, and bankruptcy.

There are a number of ways to reduce a deficit. In government finance, one way to reduce a deficit is to reduce government spending. Another way to reduce a deficit is to increase government revenue, for example, by raising taxes. In personal finance, one way to reduce a deficit is to increase income. Another way to reduce a deficit is to reduce spending.