# deficit

/ˈdɛfəsət/ (US) · /dˈɛfɪsˌɪt/ (UK)

Source: https://englishreference.com/word/deficit
Updated: 2026-06-19

## Senses

### 1. financial shortfall

noun · CEFR B2 · Academic

the amount of money by which a government's or company's spending is higher than its income.

For teachers: the amount by which a sum of money falls short of the required amount; specifically, the excess of liabilities over assets or expenditures over income.

- The government is trying to reduce the national deficit by cutting spending.
- Economists warned that a persistent trade deficit could weaken the national currency and lead to higher interest rates in the long term.

Usage: Often used with 'budget', 'trade', or 'national'.

### 2. a lack or deficiency

noun · CEFR C1 · Technical · Academic

a lack of a particular quality, skill, or ability.

For teachers: a deficiency in amount, quality, or degree; frequently used in medical or psychological contexts to describe impaired function.

- The child was diagnosed with an attention deficit that made it hard to focus in class.
- The patient showed a significant cognitive deficit following the injury, particularly in tasks requiring short-term memory and spatial reasoning.

Usage: Commonly appears in the phrase 'attention deficit' or 'oxygen deficit'.

## Examples

- The government is trying to reduce the budget deficit.
- After years of heavy spending on infrastructure, the city council faced a significant budget deficit that required tax increases.
- Economists argue whether a persistent trade deficit reflects a lack of domestic competitiveness or simply a high level of national consumption fueled by foreign investment.

---

From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.