USA HISTORY

Detailed explanation-1: -A federal budget deficit occurs when government spending outpaces revenue or the income drawn from taxes, fees, and investments.

Detailed explanation-2: -Deficit spending is when a government spends more than the revenue it collects during a certain period. Fiscal deficits occur when a government’s total expenditures exceed the revenue that it generates, excluding money from borrowing.

Detailed explanation-3: -The U.S.’s twin deficits usually refer to its fiscal and current account deficits. A fiscal deficit is a budget shortfall. A current account deficit, roughly speaking, means a country is sending more money overseas for goods and services than it is receiving.

Detailed explanation-4: -Definition: The difference between total revenue and total expenditure of the government is termed as fiscal deficit. It is an indication of the total borrowings needed by the government.

Detailed explanation-5: -Fiscal Deficit occurs when the government spends more than it earns or beyond its resources. Revenue Deficit occurs in an economy when the realised income is less than the projected/expected income.