budget deficit

budget deficit definition - business

budget deficit

The amount by which expenditures exceed revenues for a specific period. The term is generally applied to governments when expenditures exceed tax revenues and the difference must be made up with borrowing. Large budget deficits accompanied by major borrowing can result in higher market rates of interest. Compare budget surplus.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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