Question

explain the Government Deficit.​

Answer 1

Answer:

A Government Deficit is the amount of money in the set budget by which the government expenditure exceeds the government income amount. ... To reduce the deficit or the gap between the expenditures and income, the government may cut back on certain expenditures and also increase revenue-generating activities.

Answer 2

fiscal deficit is a shortfall in a government's income compared with its spending. The government that has a fiscal deficit is spending beyond its means.

A fiscal deficit is calculated as a percentage of gross domestic product (GDP), or simply as total dollars spent in excess of income. In either case, the income figure includes only taxes and other revenues and excludes money borrowed to make up the shortfall.

A fiscal deficit is different from fiscal debt. The latter is the total debt accumulated over years of deficit spending.

KEY TAKEAWAYS_-_

• A government creates a fiscal deficit by spending more money than it takes in from taxes and other revenues excluding debt.
• The gap between income and spending is closed by government borrowing.
• The U.S. government has had a fiscal deficit in most of the years since World War II.