Fact Check: "The U.S. federal government can only run a budget deficit if expenditures exceed revenues."
What We Know
A budget deficit occurs when the federal government's expenditures exceed its revenues during a specific period, typically a fiscal year. According to the U.S. Treasury Fiscal Data, "A deficit occurs when the federal government’s spending exceeds its revenues." This definition is consistent across various sources, including the Congressional Research Service, which states that "the federal government incurs a budget deficit when its total outgoing payments (outlays) exceed the total money it collects (revenues)."
In practical terms, when the government spends more than it collects in taxes and other revenues, it must borrow money to cover the shortfall, leading to an increase in the national debt. The U.S. has experienced budget deficits for most years since 2001, with only four budget surpluses occurring in the last fifty years, the last being in 2001 (U.S. Treasury Fiscal Data).
Analysis
The claim that the U.S. federal government can only run a budget deficit if expenditures exceed revenues is supported by multiple reliable sources. The U.S. Treasury clearly states, "If the government spends more than it collects in revenue, then there is a budget deficit." This straightforward definition is echoed by other credible sources, including Investopedia and EBSCO Research Starters, which both define a budget deficit in the same terms.
The reliability of these sources is high, as they are either government publications or well-established financial education platforms. The U.S. Treasury is the authoritative body on federal fiscal matters, and its data is regularly updated and scrutinized for accuracy. Similarly, the Congressional Research Service is a nonpartisan research arm of Congress, providing objective analysis on various topics, including fiscal policy.
While some discussions around budget deficits may introduce complexities, such as the implications of deficit spending on the national debt or economic growth, the fundamental definition remains clear: a budget deficit occurs when expenditures exceed revenues.
Conclusion
Verdict: True
The claim that the U.S. federal government can only run a budget deficit if expenditures exceed revenues is accurate. The evidence from multiple credible sources consistently supports this definition, confirming that a budget deficit is defined by the relationship between government spending and revenue collection.
Sources
- National Deficit | U.S. Treasury Fiscal Data
- Federal Spending | U.S. Treasury Fiscal Data
- PDF Deficits, Debt, and the Economy: An Introduction
- A Warning About the Nation's Fiscal Health
- Deficit spending
- Budget Deficit: Causes, Effects, and Prevention Strategies
- Federal Budget Deficit | EBSCO Research Starters
