"A budget deficit occurs when the government spends more than the revenue it collects. Currently, the US government is running a $1.5 trillion budget deficit, according to Treasury Department data. The nonpartisan Penn-Wharton Budget Model projects it will increase to $2.1 trillion by 2034 if the status quo is maintained. The size of the deficit has big implications for Americans. The higher the deficit, the riskier it becomes to hold US debt, which tends to grow when the deficit does. As a result, the government could have to pay higher interest rates to borrow money. That can reduce the amount of investment in other programs the government can make. Higher interest rates on government debt, typically sold off in bonds and Treasury notes, could also cause borrowing costs to increase for Americans since the interest rates are connected to interest rates paid to invest in government debt."