Federal Deficit

Federal deficit (surplus)

When federal government expenditures are exceeded by (are less than) federal government revenue.

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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.