A deficit occurs when government expenditures exceed revenues in a given fiscal year—spending more money than received through taxes and other income sources. The resulting shortfall must be covered by borrowing, creating or increasing government debt. Federal and provincial governments can run deficits, though this increases debt that future taxpayers must repay with interest. Canadian municipalities, however, are generally prohibited from running operating deficits by provincial legislation and must balance their budgets annually. The opposite of a deficit is a surplus, where revenues exceed expenditures. Debates about deficits involve trade-offs between stimulating the economy through spending, investing in services and infrastructure, and maintaining fiscal discipline to avoid burdening future generations with excessive debt.