deficit

the property of being an amount by which something is less than expected or required

"new blood vessels bud out from the already dilated vascular bed to make up the nutritional deficit" a deficiency or failure in neurological or mental functioning

"the people concerned have a deficit in verbal memory"

"they have serious linguistic deficits" (sports) the score by which a team or individual is losing an excess of liabilities over assets (usually over a certain period)

"last year there was a serious budgetary deficit"

A budget deficit occurs when an entity (often a government) spends more money than it takes in. The opposite is a budget surplus. Total budget deficit = Structural deficit + Cyclical deficitThe size of a governmental budget deficit is often an important politicspolitical issue as well as one of economic policy. conservatism Fiscal conservatives denounce deficit spending and advocate balanced budgets. Keynesianism Keynesians argue that under some circumstances, deficit spending is justified. "Starve-the-beast" strategies usually lead to high budget deficits.An accumulated deficit over several years (or centuries) is referred to as the government debt. Often, a certain part of spending is dedicated to paying of debt with certain maturity, which can be refinanced by issuing new government bonds. That is, a Fiscal_policyfiscal deficit leads to an increase in an entity's debt to others. Any deficit must, ultimately, be repaid, either through taxation, or seignorage. The Ricardian equivalence hypothesis states that this means a public deficit is ''exactly the same'' as a tax rise.The existence of a deficit has in some cases led to the existence of a capital market and been a great benefit to economic activity.

Early Deficits - Before the invention of bonds, the deficit could only be financed with loans from private investors. A prominent example of this was the Rothschild dynasty in the late 18th and 19th century, though there were many earlier examples.These loans became popular when private financiers had amassed enough capital to provide them, and when governments were no longer able to simply print money, with consequent inflation, to finance their spending.However, large, long-term loans had a high element of risk for the lender and consequently gave high interest rates. Governments later tried to marketized debt marketize their debts by issuing bonds that were payable to the bearer, rather than the original purchaser. This meant that someone who leant the state money could sell on the debt to someone else, reducing the risks involved and reducing the overall interest rates. Examples of this are British Consols and American Treasury bill bonds.

The United States - Historically, the United States government has tended to spend more than it takes in, with national debt that was close to $1,000,000,000 at the beginning of the 20th century. The budget for most of the 20th century followed a pattern of deficits during wartime and economic crises, and surpluses during periods of peacetime economic expansion. This pattern broke from fiscal years 1970 to 1997; although the country was nominally at peace during most of this time, the federal budget deficit accelerated, topping out (in absolute terms) at $290 billion for 1992. In 1998 - 2001, however, gross revenues exceeded expenditures. Subsequently the budget has returned to a deficit basis; the estimated U.S. deficit for fiscal year 2005 was United States dollar$319 billion. As a percentage of the gross domestic product (GDP), within the context of the national economy as a whole, the highest deficit was run during fiscal year 1943 at over 30% of GDP, whereas deficits during the 1980s reached 5-6% of GDP and the deficit for 2005 was 2.6% of GDP, close to the post-World War II average.An issue about counting so-called "off-budget" items such as Social Security (USA)Social Security, which are presently running a large surplus, complicates discussion of budget deficits, as do the inevitable attempts by the party in power to downplay the deficit, while the other party exaggerates it. Nonetheless, the Social Security Administration does not see a large surplus -- while it is an example of an "off-budget" item, its own financial woes are generally recognized by experts on both sides of the aisle.

Related U.S. legislation -

1984 - Deficit Reduction Act PL 98-369

1985 - Gramm-Rudman-Hollings Anti-Deficit Act PL 99-177

1987 - Omnibus Reconciliation Act PL100-203 PL 100-202

1990 - Omnibus Reconciliation Act PL 101-508

1993 - Omnibus Budget Reconciliation Act PL 103-66

1997 - Omnibus Reconciliation Act PL 105-33

Related articles -

Office of Management and Budget

Congressional Budget Office

Starve-the-beastStarve-the-beast philosophy

References -

news.bbc.co.uk - "US budget deficit shrinks in 2005". (Oct. 14, 2005). ''BBC News''.

External links -

cbo.gov - U.S. Congressional Budget OfficeCategory:Government !financeses:Déficitfr:Déficit nl:Begrotingstekortja:赤字pl :Deficyt? !budżetowypt:Déficitru:Деф ицит

Yunus terapisi Kas
Yunus Terapisi Fiziksel ve zihinsel engelli çocukların tedavisinde yeni ve etkili bir yol
http://www.yunusterapisi.com/

School Discipline for Students with ADD
Practical tips on managing children with attention deficit disorder in the classroom.
http://www.chadd.org

National Attention Deficit Disorder Association
Articles, personal stories, interviews with ADD professionals, book reviews, and links to other ADD-related sites that provide information which may be helpful.
http://www.add.org/

National Institute of Mental Health
Symptoms, diagnosis, and treatment of various mental illnesses. Included are brochures and information sheets, reports, press releases, fact sheets, and other educational materials.
http://www.nimh.nih.gov/