Deficit/ˈdefɪsɪt/ Definition 1 of 4Pro Tip 1/3Economic Context 'Deficit' often relates to government budgets and economics. The government introduced measures to reduce the fiscal deficit. Pro Tip 2/3Negative Impact 'Deficit' implies a problematic shortfall in finances or resources. The trade deficit has had a negative impact on the economy. Pro Tip 3/3Formality Level 'Deficit' is a formal word, often used in official or financial reports. The annual report shows a significant budget deficit.