WORLD HISTORY

Detailed explanation-1: -What is the Difference Between the Federal Budget Deficit and the Federal Government Debt? A federal budget deficit occurs when government spending outpaces revenue or the income drawn from taxes, fees, and investments.

Detailed explanation-2: -A deficit occurs when the federal government’s spending exceeds its revenues. The federal government has spent $ more than it has collected in fiscal year (FY), resulting in a national deficit.

Detailed explanation-3: -A budget deficit occurs when a government spends more in a given year than it collects in revenues, such as taxes. As a simple example, if a government takes in $10 billion in revenue in a particular year, and its expenditures for the same year are $12 billion, it is running a deficit of $2 billion.

Detailed explanation-4: -The budget deficit in an economy refers to the government expenditure over and above the government revenues. This threatens economic stability and creates pressure as there will be a burden of debt on the government.

Detailed explanation-5: -Deficit spending occurs when government spending exceeds its revenue. Deficit spending often refers to intentional excess spending meant to stimulate the economy. British economist John Maynard Keynes is the most well-known proponent of deficit spending as a form of economic stimulus.