Revenue Deficit


DEFINITION of 'Revenue Deficit'

When the net amount received (revenues less expenditures) falls short of the projected net amount to be received. This occurs when the actual amount of revenue received and/or the actual amount of expenditures do not correspond with predicted revenue and expenditure figures. This is the opposite of a revenue surplus, which occurs when the actual amount exceeds the projected amount.

BREAKING DOWN 'Revenue Deficit'

For example, consider an organization with budgeted revenue of $325,000 and budgeted expenditures of $200,000, which equates to a net amount of $125,000. During the fiscal year, the organization's total revenue is actually $300,000, while its total expenditure is $195,000. The net amount received by the organization is $105,000, which is $20,000 less than the projected receipt of $125,000. Therefore, although the organization generated a positive net amount of proceeds, it fell short of the projected amount, creating a revenue deficit.

  1. Deficit

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  2. Revenue

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  3. Capital Expenditure (CAPEX)

    Capital expenditure, or CapEx, are funds used by a company to ...
  4. Fiscal Policy

    Government spending policies that influence macroeconomic conditions. ...
  5. Accrued Revenue

    An asset class for goods or services that have been sold or completed ...
  6. Budget Surplus

    A situation in which income exceeds expenditures. The term "budget ...
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