promotion image of download ymail app
Promoted
mike asked in Politics & GovernmentPolitics · 1 month ago

What is the difference between the national debt and the budget deficit?

7 Answers

Relevance
  • Anonymous
    1 month ago

    When spending exceeds revenue—or income—it's called deficit spending. On a government-level, the national debt is the accumulation of each year's deficit. For a business or individual, this would be their total debt. When the revenue exceeds the spending, it creates a budget surplus.

    https://www.thebalance.com/deficit-vs-debt-how-the...

    The deficit is the difference between what the U.S. Government takes in from taxes and other revenues, called receipts, and the amount of money it spends, called outlays. The items included in the deficit are considered either on-budget or off-budget.You can think of the total debt as accumulated deficits plus accumulated off-budget surpluses. The on-budget deficits require the U.S. Treasury to borrow money to raise cash needed to keep the government operating. It borrows the money by selling securities to the public.

    https://www.aarp.org/politics-society/government-e...

    Trump likes to claim that everything he does is the largest by any President. He is going to get his “wish” with the budget deficit since they are on course to be the biggest in an expanding economy. Between the 2018 tax cuts and the increase in spending for 2020 and 2021 it will push the accumulated deficits to be the largest ever over a four-year timeframe. And God help the U.S. when a downturn in the economy hits and the deficits balloon beyond any current projection.

    https://www.forbes.com/sites/chuckjones/2019/07/29...

    • Commenter avatarLogin to reply the answers
  • 1 month ago

    The deficit is the annual difference between what you spend and what you take in from taxes and fees.

    The debt is the total of all the previous years deficits.

    • Commenter avatarLogin to reply the answers
  • 1 month ago

    Let me try a different example. The debt is what you currently owe on your credit cards- what you spent in the past. Now, if you figure up your expenses for the next year, and they exceed your income, you've got a deficit in your budget. You'll keep rolling up debt, because you can't pay it off. 

    • Commenter avatarLogin to reply the answers
  • 1 month ago

    The National Debt Is the total accumulated debt built up by years of failing to balance the Budget.

    The Deficit is the amount added to that Debt during any specified one year period.

    • Commenter avatarLogin to reply the answers
  • How do you think about the answers? You can sign in to vote the answer.
  • 1 month ago

    It's like your credit card balance. The deficit is how much more you add to it than you pay off. The debt is the total that you owe after months of doing that.

    • Commenter avatarLogin to reply the answers
  • 1 month ago

    The deficit is a total of government borrowing for each year.  The debt is the total amount borrowed at any time.  Because old debt can be paid off, the debt doesn't necessarily equal the sum of all deficits, but it's close.

    • Commenter avatarLogin to reply the answers
  • Rich B
    Lv 4
    1 month ago

    The debt is the amount the U.S. owes from borrowing in the past. The deficit is what we are overspending presently compared to the money that is projected to come in from taxes etc.

    • Commenter avatarLogin to reply the answers
Still have questions? Get your answers by asking now.