BUDGET DEFICIT

the amount by which a government’s annual expenditures exceed its annual tax revenues

Government budget deficits can be cured by cutting spending, raising taxes or a combination of the two. Deficits must be financed by borrowing money. Interest must be paid on borrowed funds, which increases the deficit.

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In the news… U.S. budget deficit totals $974B through July (CBSNEWS.COM, 9/10/12)

BUDGET SURPLUS

the amount by which a government’s annual tax revenues exceed its annual expenditures

In the news… President Obama Sees First Budget Surplus Of Presidency