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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.
Definition: A budget deficit is when spending is greater than the revenue received for that year. That's known as deficit spending. The national debt is the accumulation of each year's deficit. When revenue exceeds spending, that creates a budget surplus. A surplus subtracts from the deficit.