Fiscal Deficit


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.

BREAKING DOWN '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.

  1. Current Account Deficit

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  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 ...
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  1. How long has the U.S. run fiscal deficits?

    The United States began its history indebted, owing more than $70 million to the French and Dutch after the end of the Revolutionary ... Read Full Answer >>
  2. Can state and local governments in the US run fiscal deficits?

    There is nothing about the nature of state and local governments that prevents them from running deficits in the same manner ... Read Full Answer >>
  3. Who thinks fiscal deficits are a good idea?

    Fiscal deficits describe the year-to-year annual current account shortfalls in a government budget, such as government expenditures ... Read Full Answer >>
  4. How do you make working capital adjustments in transfer pricing?

    Transfer pricing refers to prices that a multinational company or group charges a second party operating in a different tax ... Read Full Answer >>
  5. How much money does Florida make from unclaimed property each year?

    Each year, goods such as money, financial investments and physical property are either auctioned off or appraised before ... Read Full Answer >>
  6. How much money does New York make from unclaimed property each year?

    According to the Office of the New York State Comptroller, types of unclaimed property accounts include bank accounts, wages, ... Read Full Answer >>

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