Definition of Cyclical Deficit
What is a cyclical deficit? What is the definition of a cyclical deficit? What does cyclical deficit mean?
A cyclical deficit occurs in the bottom end of an economic cycle. The opposite of a cyclical deficit is a cyclical surplus.
What is a deficit? A deficit occurs when a government spends more than what they take in.. in terms, expenses are greater than revenues, or, spending is greater than tax revenues.
With a "structural deficit", a government will post a deficit no matter how strong their economy is. If things remain the same, expenses will always outpace revenues in the case of a structural deficit.

Cyclical deficits only occur when an economy weakens and revenues (such as tax receipts) drop.
When the economy strengthens, the cyclical deficit will turn into a cyclical surplus.
By definition, the cyclical surplus will pay for the money that needed to be borrowed in a cyclical deficit.
In short - a cyclical deficit occurs when the economy is in the bottom half of its cycle, while a cyclical deficit occurs when an economy is in the top half of its cycle.
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