What is the difference between budget deficit and debt?

Answer 1

Very simple. The budget deficit is each year's gap between a country's incomes and its expenses. This is usually for most countries in the world negative, thus we call it deficit. In other words the expenses are larger than the income in a year. Now if you add up the deficit from every year in the past we call this debt (debt=cumulative deficit).

I hope this helps

Answer 2

A budget deficit occurs when one spends more money than they have. Although some people can create a budget deficit with their debt ratio, most times one can manage debt without spending more money than they have.

Answer 3

A website you may like.

http://www.federalbudget.com/

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