Fiscal
Fiscal Deficit (Budget Deficit)
Definition
When a government spends more than it collects in revenue, requiring borrowing to cover the gap.
Explanation
Most countries run deficits most of the time. US deficits range from 3-8% of GDP. During crises (2008, 2020), deficits surge to 15%+. The IMF considers deficits above 3% of GDP potentially unsustainable for most countries.