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How to calculate a budget deficit
To calculate budget deficit you need to subtract total expenditures from total receipts excluding any borrowing. Here is the calculation for a budget deficit in formula form:
Budget deficit = Total expenditures - Total receipts excluding any borrowing in a fiscal year
Budget deficits reflect the amount of money organizations need to borrow to meet all of their expenses. In other words, a budget deficit means a company is spending more money than it is generating in revenue.
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