The correct answer is the following.
The budget deficit is larger.
The new deficit is larger compared to the 2012 budget deficit.
A budget deficit happens when expenses exceed revenue. This means that a company spend more money compared to what it earned during period of time. In this case, we are talking about a yearly budget. The government is usually the entity that presents budget deficits. So in order to correct the situation, the government must cut or reduce some expenses that are not a priority to balance its accounts.
