What Is a Budget Deficit? Deficit Causes & Solutions

• Tax cuts (these decrease revenue)
• Low Gross Domestic Product (GDP - the money that's being made in the country; it means that we're not making enough money domestically)
• Poorly-designed tax structures that under-tax high-earners and over-tax low-earners
• Excessive spending on certain governmental programs
• High amount of spending for subsidies to various industries

In order to reduce the budget deficits that's happening with the government, they can do the following:

• Increase the taxes, particularly on the wealthy, as advocated by a large group in order to increase federal revenue therefore offsetting the deficit.
• Stimulate economic growth. It can be tricky because cutting taxes increases growth however we need to raise the taxed to maintain revenue.
• Reduce spending on certain government programs. Some are advocating to reduce spending on social programs while others, military spending. 

• Keep tabs on how much money you earn each month. It's important to know how much you make so that you'll be able to plan out your expenses.
• Make a checklist of your monthly expenses, down to the penny; and
• Allocate budgets to spend for certain matters that match your income.