Government budget balance
A budget deficit occurs when an entity (often a government) spends more money than it takes in. The opposite is a budget surplus.
This entry only concerns the government's deficits. These are important political issues. "Starve-the-beast" strategies usually lead to high budget deficits. Others, fiscal conservatives denounce deficit spending and advocate balanced budgets. Keynesians argue that under some circumstances, deficit spending is justified.
Note that the deficit is distinct from the government's debt (often confusingly called the national debt or public debt), which results from an accumulated deficit across a number of years. That is, a budget deficit leads to an increase in an entity's debt to others.
The United States
From 1970 to 1997, the United States Government ran significant deficits. By 1998, budget surpluses became common, lasting through 2001; the U.S. deficit for fiscal year 2003 was $374.2 billion.
An issue about counting so-called "off-budget" items such as Social Security, which are presently running a large surplus, complicates discussion of budget deficits.
Related U.S. legislation
- 1984 - Deficit Reduction Act PL 98-369
- 1985 - Gramm-Rudman-Hollings Anti-Deficit Act PL 99-177
- 1987 - Omnibus Reconciliation Act PL100-203 PL 100-202
- 1990 - Omnibus Reconciliation Act PL 101-508
- 1993 - Omnibus Budget Reconciliation Act PL 103-66
- 1997 - Omnibus Reconciliation Act PL 105-33