Question

Answer this question before making any changes to spending percentages. Before you make your budgetary changes, how does the new deficit compare to the 2012 budget deficit?

Answer 1

The answer to the question is its larger.

Answer 2

The correct answer is the following.

The budget deficit is larger.

The new deficit is larger compared to the 2012 budget deficit.

A budget deficit happens when expenses exceed revenue. This means that a company spend more money compared to what it earned during period of time. In this case, we are talking about a yearly budget. The government is usually the entity that presents budget deficits. So in order to correct the situation, the government must cut or reduce some expenses that are not a priority to balance its accounts.