When a government's expenditures exceed its revenues, resulting in a negative balance, this situation is referred to as a _________.

When a government's expenditures exceed its revenues, this situation is called a budget deficit. This means that the government is spending more money than it is bringing in from taxes and other sources. For example, if a government collects $100 million in taxes but spends $120 million on public services, it has a budget deficit of $20 million. This deficit can lead to borrowing money, which means the government will owe more in the future. Understanding budget deficits is important because they can affect the economy and how much money the government has for important projects.