Which of the following is the best example of a budget deficit?

government revenues exceed government spending
personal income equals personal spending
government revenues fall short of government spending
personal savings impacts personal income

Government revenues fall short of government spending.

The best example of a budget deficit is when government revenues fall short of government spending.

Explanation:

The concept of budget deficit or public deficit describes the situation in which the expenditures made by the government exceed non-financial income, in a certain period (normally one year).

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