- 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.
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.