TheTaxHeaven Dictionary - Know the meaning of tax


Understanding Deficit 

A deficit refers to a situation where expenses exceed income. This occurs with individuals, governments, or countries that spends more than they earn or receive. The deficit can lead to borrowing, increasing dependency and potential economic risks. 

Further Explanation on Deficit 

A deficit can be harmful, but sometimes it's strategically chosen for future benefit. For instance, governments might increase spending during recessions to boost the economy and job growth, despite increasing the fiscal deficit. 

The most common types of deficits include fiscal and trade, with others including current account, capital account, primary, and budget deficits.