What occurs when a government's total expenditures exceed its total revenues?

When a government's total expenditures exceed its total revenues, it results in a fiscal deficit. This situation means that the government is spending more money than it is receiving, which often leads to borrowing to cover the shortfall. A fiscal deficit can be indicative of the government's financial health and its ability to fund public services and projects.

In general, a persistent fiscal deficit can raise concerns about sustainability, as excessive borrowing may lead to higher interest rates or inflation. It can also lead to diminished confidence among investors regarding the government's fiscal management, potentially impacting the overall economy.

The other concepts mentioned, such as a budget surplus, trade surplus, and current account deficit, pertain to different economic scenarios. A budget surplus occurs when revenues exceed expenditures, while trade and current account surpluses or deficits refer to international trade balances, which do not directly relate to a government’s fiscal status.