A budget deficit occurs only when government spending exceeds revenue in a single fiscal year, and it has no long-term implications for national debt.

A budget deficit happens when the government spends more money than it makes in a year. This means that if the government collects $3 trillion in taxes but spends $4 trillion, it has a deficit of $1 trillion. While a budget deficit can be a normal part of government finances, especially during tough economic times, it can lead to long-term problems if it happens repeatedly. Over time, these deficits can add up and increase the national debt, which is the total amount the government owes. For example, if the government has a deficit every year for five years, the national debt will grow significantly, making it harder to pay back in the future.