A situation where the expenditure of the government exceeds its revenue is called what?
A situation where the expenditure of the government exceeds its revenue is called what?
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A situation where the expenditure of the government exceeds its revenue is called a budget deficit. This occurs when the government spends more money than it receives from taxes and other revenue sources within a given period, typically a fiscal year. To cover the shortfall, the government may need to borrow money, increasing public debt.