The economy,
in human terms.
The spending decisions that shape everyday life.
A federal deficit measures when spending exceeds revenue during a period. National debt reflects accumulated borrowing and associated interest, so one year’s surplus does not erase earlier obligations.
A federal deficit is the amount by which spending exceeds revenue during a period. Treasury borrows to cover the shortfall, and repeated borrowing adds to outstanding debt. Deficits are yearly flows; debt is the accumulated balance, including associated interest owed to holders of Treasury securities.
The national debt is the federal government’s accumulated outstanding borrowing, including associated interest owed. It reflects borrowing across time; a deficit measures a shortfall over a particular period. The national measure excludes state, local, household, and business debts.
