- When the government spends more money than it receives in revenue over the course of one year.
financial deficit, budget deficit, economic deficit
Related Terms and Acronyms
- Deficit — Definition,
- When expenses surpass income or liabilities surpass assets.
- Economic Growth — Definition,
- The rate of change in output from one year to the next.
- Exports — Definition,
- Products and services produced in Canada and sold in other countries.
- Fiscal Policy — Definition,
- The use of government spending and taxation policies to influence the economy.
- Fiscal Surplus — Definition,
- When the government receives more in revenue than it spends over the course of the year.
- Gross Domestic Product (GDP) — Acronym,
- The total value of all the goods and services produced by the Canadian economy in a single year.
- North American Free Trade Agreement (NAFTA) — Acronym,
- An agreement between the United States, Canada, and Mexico that allows for freer trade between the three countries.
- Surplus — Definition,
- When an entity's income exceeds its expenses.