what causes a budget deficit to improve 
budget deficits reflected as a percentage of gdp may decrease in times of economic prosperity as increased tax revenue lower unemployment rates and increased economic growth reduce the need for government funded programs such as unemployment insurance the bottom linebudget deficits are a negative balance between a government s spending and revenues when a government spends more than it collects in tax revenues there is a deficit conversely if there is more collected than spent there is a surplus 