Deficit

Definition

• A measure of how much expenses exceed net income, liabilities exceed assets, imports exceed exports, or losses exceed profits. For example, in government spending, a budget deficit happens when government spending exceeds tax revenue. The opposite of a deficit is a surplus.

Synonyms
shortfall

Alternate Spellings
surplus

Related Terms and Acronyms

• Exports — Definition,
  • Products and services produced in Canada and sold in other countries.
• Fiscal Deficit — Definition,
  • When the government spends more money than it receives in revenue over the course of one year.
• Fiscal Surplus — Definition,
  • When the government receives more in revenue than it spends over the course of the year.
• Imports — Definition,
  • Goods and services produced in other countries and sold in Canada.
• Loss — Definition,
  • When expenses are larger than revenues.
• Net Income (NI) — Acronym, Very Important,
  • The difference between effective gross income and expenses. The term is qualified as net income before depreciation and debt.
• Profit — Definition,
  • When revenues exceed expenses.
• Surplus — Definition,
  • When an entity's income exceeds its expenses.