Economy - Finance > Taxes

Understanding deficits - when spending outpaces revenue for a company or government

4 days ago   |   By Business Insider

During a downward economic period, a government deficit could inject spending into the economy to turn things around. John Baggaley/Getty
A deficit is the shortfall between two measurements, such as earnings and spending.
When the government spends more than it takes in as revenue, that creates a deficit.
Not all deficits are bad, even though they can accumulate to create debt.
Visit Insider's Investing Reference library for more stories .
A deficit can be any type of negative gap between two benchmarks. A basketball team could have a deficit of 10 points if they're down 80-70 in the...
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