Cyclical Deficit

Cyclical Deficit
   The portion of a country's budget deficit which is due to economic swings, with budget positions tending to deteriorate as economies slow, tax revenues fall and welfare spending rises. The cyclically-adjusted deficit strips out the impact that economic swings have on budgetary health.
   ► See also Structural Deficit.

* * *

cyclical deficit UK US noun [C] ECONOMICS
the amount by which a government’s spending is more than it receives in taxes at a time when the economy is not performing well
Compare STRUCTURAL DEFICIT(Cf. ↑structural deficit)

Financial and business terms. 2012.

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