Federal Deficit vs. Federal Debt

Governments all over the world were especially concerned about their expenditures and revenues in order to see the actual fiscal spending in relation to budgeted figures. A deficit is a shortfall in revenues, while debt is external money borrowed for some purposes. Federal deficit indicates what the government acquires in the form of taxes, and what it actually spends in. Federal deficit is a situation in which the state revenues (excluding loan repayments) are less than its expenditure (excluding debt) over a period of a year (Congressional Budget Office CBO, pp. 5-17). Federal deficit is a different ...