The government spends it.
expenditures
A pie chart dividing up the budget into categories
One thing is people demanding the Gov't provide more services and benefits to them then they are willing to share the cost of paying for.
At its simplest definition, if the government spends more then it gains, in a single year, then it has, what is called a 'budget deficit'. If there is a deficit, it adds to the US debt.
Deficit A+ the government will have a surplus
A Surplus
The government spends it.
That's called a deficit.
Debt. The amount the government spends, above and beyond incoming revenue is called a deficit. The accumulated annual deficit spending plus interest is the debt.
Government accounting is the authorizing, tracking and recording of revenue and expenditures. It can govern how taxes are raised and how the executive of a government spends the proceeds.
For a government that taxes and spends, there is revenue (income) and expenditures (outlays). When the expenditures exceed the revenue, the difference is a deficit, also referred to as a "shortfall". When revenue exceeds expenditures, there is money left over, and this is a surplus.
The government spends it.
The government issues treasury bonds and spends the revenue on a new highway system.
It generates revenue and income from the tourists buying souvenirs. Also, the income that a store's owner (if it isn't owned by the government) spends it on goods generating revenue to Tonga's government. This is basically, of how all countries, get tourism's effect.
The annual deficit is the amount of money the government is losing every year: basically, how much it spends beyond what it makes. The national debt is the sum of all the annual deficits combined.
When a firm spends more than it gains in revenue it is called a LOSS.