economics

deficit

The amount by which expenditure exceeds income or revenue, resulting in a shortfall.

Example

"The government ran a $1 trillion deficit last year, borrowing to cover the gap."

💡 Memory Tip

DEFICIT = DEFICiency. Something is deficient — you're spending more than you have.

Etymology

From Latin 'deficit' meaning 'it is lacking' — something is lacking (not enough money).

Common Misspellings

defecitdefictdeficetdeficite

Related Terms

debtsurplusfiscal policybudget

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