When you spend more than you earn and the total amount of money that you're spending turns out to be more than the amount that you're brining in causes a budget deficit.
For example, if you spend $100 per week but earn less than that every week, that's a budget deficit. In addition, should you continue this kind of excessice spending, you will likely end up in debt.
Budget deficits can happen in both small and large scales (individual - nations).
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