Fiscal Deficit

AAA

DEFINITION of 'Fiscal Deficit'

When a government's total expenditures exceed the revenue that it generates (excluding money from borrowings). Deficit differs from debt, which is an accumulation of yearly deficits.

INVESTOPEDIA EXPLAINS 'Fiscal Deficit'

A fiscal deficit is regarded by some as a positive economic event. For example, economist John Maynard Keynes believed that deficits help countries climb out of economic recession. On the other hand, fiscal conservatives feel that governments should avoid deficits in favor of a balanced budget policy.

RELATED TERMS
  1. Current Account Deficit

    A measurement of a country’s trade in which the value of goods ...
  2. Budget Deficit

    A status of financial health in which expenditures exceed revenue. ...
  3. Fiscal Policy

    Government spending policies that influence macroeconomic conditions. ...
  4. Budget Control Act - BCA

    A federal statue passed by Congress and signed into law by President ...
  5. Fiscal Cliff

    A combination of expiring tax cuts and across-the-board government ...
  6. Rubinomics

    A combination of the words "Rubin" and "economics" that focuses ...
Related Articles
  1. Economics

    Economics Basics

  2. Economics

    Macroeconomics

  3. thinkstock|istock
    Economics

    What Is Fiscal Policy?

  4. To finance the budget deficit, the US government may seek to raise money by taking on debt, often by borrowing from the public.
    Bonds & Fixed Income

    A Look At National Debt And Government ...

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center