The Deficit in Economics and Accounting is the negative balance that occurs when expenses are greater than income. In accounting it represents the excess of liabilities over assets. When it refers to the public deficit, it refers to the excess of government spending over its income; When it comes to the trade deficit of the balance of payments, it is related to the excess of imports over exports.
Summary
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- 1 – Varieties of Deficit in Economics
- 1 Deficit to Finance
- 2 Capital Deficit
- 3 Economic deficit
- 4 Budget Deficit
- 2 – Deficit or Surplus
- 1 Cash Deficit or Surplus
- 2 Primary Economic Deficit or Surplus
- 3 Extra-Budgetary Deficit or Surplus (Balance)
- 4 Financial Deficit or Surplus (Balance)
- 5 Monetary Deficit or Surplus (Balance)
- 6 Operational Deficit or Surplus (Balance)
- 7 Budget Deficit or Surplus (Balance)
- 8 Deficit, Surplus and Balance
- 3 – Sources
– Varieties of Deficit in Economics
In Economics, there are several Deficit classifications according to their economic impact and the form or level they are developed:
Deficit to Finance
Negative result of the confrontation between the income and expenses of an exercise. This concept should only be mentioned for budgetary purposes. It is used to know the resource requirements necessary to finance the operation and investment activities of the public sector.
It is the result of the difference between income and expenses of an exercise to know and identify shortages, and thereby indicate the resource requirements necessary to finance the operation and investment activities of the Public Sector.
Capital deficit
Negative difference resulting from the comparison between capital income and expenses of the Public Sector.
Economic deficit
It is the shortfall in which the state incurs by intervening, through public spending, in economic activity directly. It represents the negative result of the difference between income and expenses, both of the federal government and of the parastatal entities of direct or indirect budgetary control.
The economic deficit is obtained by adding to the budget deficit the non-budget deficit. The budget deficit results from the negative difference between oil and non-oil revenues with the budget expenditures of the Federal Government and the direct control parastatal sector. The non budgetary deficit is the negative result of the difference between the income and expenses of the DDF and of the agencies and companies of indirect budgetary control.
Budget deficit
Corresponds to the result of the confrontation between the financial deficit against the net increase in debt with a negative balance, or the amount obtained by subtracting budgetary expenses from income, the latter being larger. in the economic interpretation, it results from adding to the capital deficit, the acquisition of long-term financial assets, net.
– Deficit or Surplus
Negative or positive result that occurs when comparing the income and expenses of an economic entity.
Cash Deficit or Surplus
A deficit is incurred when the income collected in the Federal Treasury by way of the Federal Income Law does not cover the amount of the payments it makes. In the case of a surplus, the former exceed the latter, expresses the results of the Federal Government; and it results from adding to the budget deficit, the variation in external accounts .
Result obtained when comparing the available liquid income and expenses of the entities of the parastatal sector, including transfers.
Primary Economic Deficit or Surplus
Result obtained from comparing total income and expenses of the public sector, excluding interest on debt. This concept measures the part of the fiscal deficit over which direct control can be exercised, since debt service is largely an expense conditioned by the economy in general.
Extra-Budgetary Deficit or Surplus (Balance)
Balance that results from comparing the income and expenses of the parastatal entities of indirect budgetary control.
Financial Deficit or Surplus (Balance)
Result that is obtained from comparing the total income without financing and the total expenses without amortization of the entities and public dependencies. As for the entities involved, it includes those of direct and indirect control, as well as financial intermediaries.
Monetary Deficit or Surplus (Balance)
Result that is obtained from the comparison between income and net expenses of the public sector and that allows establishing its real needs for funds. It is commonly used to check the veracity of the balance of the Federal Government current account at Banco de México .
The monetary deficit is the negative difference, between the income and the effective expenses, adjusted by the economies, the expended expenditure pending payment and the variation in the external accounts. It is the equivalent to the net movements in public debt and the variation in the availability of public entities. The monetary surplus is the opposite.
Operational Deficit or Surplus (Balance)
It is the one obtained by subtracting from the primary economic surplus the inflationary amortization of the balance of the public debt in national currency .
Budget Deficit or Surplus (Balance)
It is the negative or positive balance that results from comparing the expenses and income of the Federal government and the agencies and companies of direct budgetary control, whose financial forecasts are contained in the Expenditure Budget of the Federation, are to consider amortization , and the result in foreign accounts.
Deficit, Surplus and Balance
Deficit is the situation in which income is less than expenses; when the opposite occurs there is a surplus, and when the values of income and expenses are equalized, the balance is in equilibrium, that is to say, an economic stagnation, since the same amount that is entered is spent.
