What is the term for when a government spends more than it raises through taxes?

The term for a situation where a government spends more than it raises through taxes is a budget deficit. This occurs when government expenditures exceed its revenue, leading to a shortfall that must be financed, often through borrowing. In the context of fiscal policy, a budget deficit can have various implications for the economy, including increases in national debt, as the government may need to take on additional debt to cover the shortfall.

To clarify the other terms for context: national debt refers to the total amount of money that a government owes to creditors as a result of past budget deficits and borrowing. A budget surplus indicates a scenario where the government raises more revenue than it spends, allowing for savings or reduction of existing debt. A balanced budget occurs when the government's expenditures equal its revenues, with neither a surplus nor a deficit. Thus, for this question, the term that accurately describes the scenario of spending exceeding revenue is budget deficit.