Budget deficit
What Budget deficit means in Economics GCSE, as defined for AQA, Pearson Edexcel.
Definitions of Budget deficit
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Reference: AQA
Arises when government spending exceeds revenue, requiring the government to borrow money to fund the shortfall.
A budget deficit occurs when government spending exceeds government revenue in a given financial year.
Occurs when government spending exceeds taxation revenue in a given financial year.
When government spending exceeds government tax revenue in a given financial year.
When government spending is greater than tax revenue in a given financial year.
Topics that use Budget deficit
- Fiscal policy (AQA GCSE)
- Government income and expenditure (AQA GCSE)
- Government and the economy (Pearson Edexcel GCSE)
- Government policies (Pearson Edexcel GCSE)
Related terms
- Fiscal policy
- Budget surplus
- Government revenue
- National debt
- Progressive tax
- Aggregate Demand (AD)
- Balanced budget
- Budget balance
Using Budget deficit in the exam
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