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Structural deficit - explained

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adria
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A structural (permanent) deficit differs from a cyclical deficit in that it exists regardless of the point in the business cycle due to an underlying imbalance in government revenues and expenditures. Thus, even at the high point of the business cycle when revenues are high the country's economy may still be in deficit. The structural component of the budget is a good indication of a government's financial management, as it indicates the underlying balance between long-term government revenues and expenditure, while removing factors that are mainly attributable to the business cycle.

Example
A number of European countries in 2011, such as Greece and Spain, are now facing structural deficits leading to a crisis of confidence regarding their ability to pay off this debt.

Reference: http://en.wikipedia.org/wiki/Structural_and_cyclical_deficit

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