A deficit occurs when the federal government’s spending exceeds its revenues. The federal government has spent $945.72 billion more than it has collected in fiscal year (FY) 2022, resulting in a national deficit.
A budget deficit occurs when money going out (spending) exceeds money coming in (revenue) during a defined period. In FY 2021, the federal government spent $6.82 trillion and collected $4.05 trillion in revenue, resulting in a deficit. The amount by which spending exceeds revenue, $2.77 trillion in 2021, is referred to as deficit spending.
The opposite of a budget deficit is a budget surplus, which occurs when the federal government collects more money than it spends. The U.S. has experienced a fiscal year-end budget surplus five times in the last 50 years, most recently in 2001.
When there is no deficit or surplus due to spending and revenue being equal, the budget is considered balanced.