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What is the Deficit? The federal government deficit is the current gap between the money brought in as revenue and the money going out as spending. The federal government debt is the cumulative amount of money borrowed. You probably have to incur debt to cover a deficit, but a deficit can be temporary while a debt may stick around for a while.
When a government revenue is in excess of its expenditure, it results in a deficit, which means the government is spending more than what it is earning. To close this gap, the government will be compelled to source for fund either from financial institutions, individuals or external bodies.