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Browse thousands of words and phrases selected by Financial Times editors and suggest new terms for the glossary.


Term of the day

structural deficit

A budget deficit that results from a fundamental imbalance in government receipts and expenditures, as opposed to one based on one-off or short-term factors.

A government budget deficit occurs when a government spends more than it receives in tax revenue, while a structural deficit is when a budget deficit persists for some time.

Structural deficits will eventually pose a problem for any government. Deficits are financed by borrowing, and continued borrowing leads to an accumulation of debt. The...