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deficit

/ˈdɛfɪsɪt/  ·  say it: DEF·uh·sit

the amount by which spending exceeds income

In Banking & Finance

In more detail

1. (noun) the amount by which something falls short of what is needed or expected

2. (noun) the amount by which money spent is greater than money earned or received

Examples

• 1. The team had a deficit of 10 points with only five minutes left to play.
• 2. The government has a budget deficit of billions of dollars this year.

How to use deficit

Deficit is a formal, technical term used in financial and economic contexts to describe when expenditures exceed income or when a required amount is not met. It is more specific and formal than the general synonyms 'shortfall' or 'lack', and commonly appears in government budgets, trade discussions, and business reports. The term carries a neutral or slightly negative connotation, depending on context.

Register: formal

Common phrases

• budget deficit
• trade deficit
• deficit spending
• run a deficit
• fiscal deficit
• close the deficit

Synonyms

shortfall · shortage · gap · lack · arrears

Opposites

surplus · excess · profit

Word family

deficient (adjective) · deficiency (noun)

A common mistake

Learners sometimes confuse 'deficit' with 'defect' (a flaw or imperfection); these are distinct words with different meanings.

Nearby in Banking & Finance

remittance, subprime, surplus, venture capital, windfall, write-off

Keep going

How to remember the words you read · Spaced repetition, explained