Deficit Legal Meaning and Definition

Here is a simplified definition of the legal term Deficit.

Deficit (noun)

A deficit is a financial term used to describe a situation where expenses or costs are higher than the income or revenue generated. This usually results in a shortage of funds. The term is often used in the context of budgets, such as governmental budgets, where spending is more than the income or funding received, resulting in a deficit. Deficits are usually seen as negative or undesirable situations, and many entities aim to avoid them.