What is the budget deficit and how big is it? When the government spends more than it receives in tax and other revenues it borrows to cover the difference. This borrowing is known as ‘public sector net borrowing’ but is often referred to as the deficit. In 2019/20, government revenue – from taxes and other receipts – was £828 billion while government spending was £885 billion. The deficit was therefore £57 billion, equivalent to 2.6% of GDP. [...]