Fiscal deficit, that is, budget failure, refers to the economic phenomenon that at the beginning of each fiscal year, a government always makes a fiscal budget plan for that year. If the result of actual implementation is that income is greater than expenditure, it is fiscal surplus and expenditure is greater than income. Theoretically speaking, fiscal balance is the best financial situation. In reality, it means fiscal balance or slight savings. But in reality, countries often need a lot of wealth to solve a lot of problems, and there will be situations where income can't meet their needs. This is one of the reasons why the fiscal deficit is now inevitable. But it also reflects the role of fiscal deficit, that is, it can stimulate economic growth within a certain limit. When residents' consumption is insufficient, the government usually increases government investment to stimulate economic growth, but this is by no means a long-term solution.

1. Trade surplus. The so-called trade surplus means that a country's total export trade in a specific year is greater than its total import trade, also known as "surplus", which means that the country's foreign trade in that year is in a favorable position. The size of the trade surplus largely reflects a country's foreign trade activities in a specific year. Under normal circumstances, it is not appropriate for a country to maintain a large foreign trade surplus for a long time, because it is easy to cause friction with relevant trading partners. For example, one of the main reasons for the market fluctuation of bilateral relations between the United States and Japan is that Japan has been in a huge surplus for a long time. At the same time, a large amount of foreign exchange surplus usually leads to the increase of local currency in a country's market, which is easy to cause inflationary pressure and is not conducive to the sustained and healthy development of the national economy.

2. Trade deficit. The so-called trade deficit means that a country's total import value is greater than its total export value in a specific year, commonly known as "surplus", which reflects that the country was at a disadvantage in foreign trade that year. Similarly, a government authority should try to avoid a long-term trade deficit, because a huge deficit will lead to the outflow of domestic resources and the increase of foreign debt. This situation will also affect the normal operation of the national economy.