The situation where by a government spends more than its budgets for a fiscal year is known as

The situation where a government spends more than its budget for a fiscal year is known as a deficit budget. This means that the government's expenditures exceed its revenue for the year, resulting in a budget deficit. This can occur due to a variety of factors such as increased spending on social programs, unexpected economic downturns, or decreased revenue from taxes. A deficit budget can have negative consequences such as inflation, increased public debt, and a reduced ability to respond to future economic challenges.