deficit spending

American  

noun

1. the practice of spending funds in excess of income, especially by a government.

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Etymology

Origin of deficit spending

First recorded in 1935–40

Example Sentences

That translates to higher costs for new mortgages and car loans, corporate borrowing and U.S. deficit spending.

From MarketWatch • Apr. 8, 2026

“Current deficit spending as a percent of GDP of 5.2% would be 6.1% without tariff revenue,” says Bill Merz, head of capital markets research at U.S.

From Barron's • Feb. 26, 2026

Trade wars, deficit spending and a falling dollar helped gold prices surge 65% in 2025 and to records above $5,300 a troy ounce in January.

From The Wall Street Journal • Feb. 16, 2026

The nation’s second-largest school system has been able to sustain deficit spending because of reserves left over from more than $5 billion in one-time pandemic-relief aid.

From Los Angeles Times • Jun. 25, 2025

Failure to reach agreement with multilateral lenders in late 1995 led to rising deficit spending and subsequently increasing inflation and a drop in the value of the Haitian currency in the final months of 1995.

From The 1996 CIA World Factbook by United States. Central Intelligence Agency

Related Words

• budget deficit