The Federal Budget has estimated that the Australian Government will run a budget deficit of $161.0 billion in 2020-21, and accumulate a net debt which will peak at $980.6 billion by 2025. This net debt figure is the equivalent to 40.9% of GDP (Source: Australian Treasury, Budget 2021-22, Budget Paper Number 1) Your team of economists is anticipating there is going to be concern among the general public and business community about the growing size of the government debt. This concern needs to be addressed in the Policy Brief. In your contribution to the Policy Brief, you have been asked to write a simple explanation of what is meant by a 'budget deficit'. Explain in what circumstances would a government's fiscal position being in deficit, and in what circumstances would it be running a budget surplus? You should make reference to the formula for the government's budget balance that we learnt in class. (2 sentences)