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Federal Deficit

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Federal deficit (surplus)
When federal government expenditures are exceeded by federal government revenue.

Federal Deficit
The amount by which the expenditures of the United States Federal Government exceed its revenue from taxes, tariffs, and other sources. In order to finance the deficit, the Government must borrow money, especially by the issue of Treasury securities. Some economists believe that the federal deficit has only minor importance, while others believe it could cause inflation if left unchecked, because the Government would eventually have to print money repay the deficit. It should not be confused with the national debt.


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ITEM: An Associated Press article in USA Today, entitled "Federal Deficit Now Lowest in 4 Years," reported on October 11: "The federal deficit fell to a four-year low in the budget year that just ended, a result President Bush pointed to Wednesday in claiming Republicans are better stewards of the economy than are Democrats.
Earlier in the debate, the candidates answered questions from the moderator on the war in Iraq, the federal deficit, education and Social Security.
The cuts were contained in a budget reconciliation bill that aimed to trim the federal deficit by reducing funding for entitlement programs over the next five years.
 
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