What is the difference between a debt and a deficit?

A deficit is a sum whereby an asset falls of what is needed, particularly capital. If investments outweigh sales, purchases surpass exports, or obligations outweigh reserves, a deficit exists. Under other terms, money outflows surpass fund inflows.

Debt is a sum of cash one group borrows over another. Debt is utilized by certain companies and entities as a means of allowing major transactions that, in regular conditions, they cannot manage. A debt contract grants approval to repay funds to the lending party on the basis that it is repaid later, typically with interest.