What Is a Budget Deficit?
Economists call the deficit a flow and the debt a stock, like a tap and a bathtub.
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1.What is a budget deficit?
Economists call the deficit a flow and the debt a stock, like a tap and a bathtub.
2.How does the US government finance a deficit?
Each new bond sold adds to the debt, which is how a flow turns into a stock.
3.In US fiscal 2025, spending was about 7.0 trillion and revenue about 5.2 trillion. What was the deficit?
Spending minus revenue gives 7.0 minus 5.2, which is 1.8 trillion dollars (CBO estimate).
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Sources (6)
- U.S. Treasury, Fiscal Data: America's Finance Guide, National Deficit
- U.S. Treasury, Fiscal Data: America's Finance Guide, National Debt
- CRFB: CBO Estimates 2025 Deficit Totaled $1.8 Trillion (Zusammenfassung des CBO Monthly Budget Review, 10.11.2025)
- Deutsche Bundesbank: Maastricht deficit and debt level
- Elmendorf/Mankiw: Government Debt (Federal Reserve Board FEDS 1998-09); Gale/Orszag (Brookings 2004)
- Eigene Rechnung: Schuldenquote
Education only. Not financial advice.