Revenue Deficit

Revenue Deficit
When the net amount received (revenues less expenditures) falls short of the projected net amount to be received. This occurs when the actual amount of revenue received and/or the actual amount of expenditures do not correspond with predicted revenue and expenditure figures. This is the opposite of a revenue surplus, which occurs when the actual amount exceeds the projected amount.

For example, consider an organization with budgeted revenue of $325,000 and budgeted expenditures of $200,000, which equates to a net amount of $125,000. During the fiscal year, the organization's total revenue is actually $300,000, while its total expenditure is $195,000. The net amount received by the organization is $105,000, which is $20,000 less than the projected receipt of $125,000. Therefore, although the organization generated a positive net amount of proceeds, it fell short of the projected amount, creating a revenue deficit.


Investment dictionary. . 2012.

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  • Deficit — Def i*cit, n. [Lit., it is wanting, 3d person pres. indic. of L. deficere, cf. F. d[ e]ficit. See {Defect}.] Deficiency in amount or quality; a falling short; lack; as, a deficit in taxes, revenue, etc. Addison. [1913 Webster] …   The Collaborative International Dictionary of English

  • deficit financing — n. the practice of seeking to stimulate a nation s economy by increasing government expenditures beyond revenue sources (deficit spending) …   English World dictionary

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  • deficit — noun Etymology: French déficit, from Latin deficit it is wanting, 3d singular present indicative of deficere Date: 1782 1. a. (1) deficiency in amount or quality < a deficit in rainfall …   New Collegiate Dictionary

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  • Revenue Act of 1864 — The Internal Revenue Act of 1864, 13 Stat. 223 (June 30, 1864), increased the income tax rates established by the Internal Revenue Act of 1862. The measure was signed into law by President Abraham Lincoln.ProvisionsSection 116 of the Act imposed… …   Wikipedia

  • deficit — noun a) Deficiency in amount or quality; a falling short; lack. b) A situation wherein, or amount whereby, spending exceeds government revenue. Syn: fiscal deficit See Also: defect, defection, defective, defector, deficiency …   Wiktionary

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