Difference between Debt and Deficit

After doing a lot of Google, I was confused between these two simple terms “Deficit” and “Debt”. So I finally searched in the oxford dictionary and found the basic difference between these two terms. It helped me to realize the meaning of these words.


A debt is a sum of money that you owe someone, and a deficit is the amount by which something is less than what is required or expected, especially the amount by which the total money received is less than the total money spent. 
Well the above definition may help you out, but it would be better if we take an example to explain these.


Suppose our govt. has set a target to spent Rs. 2000cr per month. Now at the end of first month they spent Rs. 2100cr which is unexpected but important. So here the difference of Rs 100Cr is nothing but monthly “deficit” (compare it with the basic meaning of deficit). Now suppose this 100cr deficit continues the whole year and ultimately the sum rounds up to Rs 1200cr. This 1200Cr is “Debt” of that financial year.


In short Debt is the sum of all deficits. Debts always occur, but deficits may not be as uncontrollable since the economical situations changes every month or year. Theoretically, it is possible to have no deficits in a month, but if there are deficits in the other months or years, then they will eventually accumulate and become a debt.


so deficit is a kind of  “chota Udhari” which accumulates to “Bada Udhari” i.e Debt.