Final answer:
A budget deficit occurs when government expenses exceed its revenue in a fiscal year. The opposite, when revenue is higher than expenses, is known as a surplus. Total government debt accumulates from annual deficits and surpluses over time.
Step-by-step explanation:
The term for when outlays exceed revenue in a given fiscal year is a deficit. This situation occurs when the government's expenses (spending) are higher than its income (taxes collected). A fiscal year for the federal government begins on October 1 and ends on September 30 of the following year. When the opposite happens, and revenues are greater than outlays, this results in a budget surplus. A balanced budget is when spending equals revenue.
For instance, the U.S. government experienced a large budget deficit in 2009, spending $1.4 trillion more than the revenue it collected. This deficit was a significant percentage of the U.S. Gross Domestic Product (GDP) for that year. The measurement of a budget deficit or surplus is an annual activity, while total government debt or national debt is the accumulation of these deficits and surpluses over time.