deficit financing

American  

noun

1. (especially of a government) expenditures in excess of public revenues, made possible typically by borrowing.

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deficit financing British  

noun

1. Also called: compensatory finance.   pump priming.  government spending in excess of revenues so that a budget deficit is incurred, which is financed by borrowing: recommended by Keynesian economists in order to increase economic activity and reduce unemployment

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deficit financing Cultural  

1. A government policy of financing large public expenditures by borrowing money rather than by raising taxes; also called deficit spending.

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Example Sentences

"If we take something like a cut-off of $100,000 a year in income, the minimum cost would be about $300bn, which would absorb all of the tariff revenue that's been taken in so far and would require some deficit financing," says Erica York, vice-president of tax policy at the non-partisan Tax Foundation.

From BBC

It said the fund would extend to areas such as oil and metals buy-back financing, commodity export revenue stabilisation and tourism revenue deficit financing.

From Reuters

The U.S. government borrowed more than $1 trillion, mostly from the Chinese — via deficit financing — to fund the 20-year war in Afghanistan.

From Washington Post

Mayra MacGuiness, president of the Committee for a Responsible Budget, said in a statement that “the strong economic growth projections from CBO show that it is time to pivot away from further deficit financing and towards paying for things and, ultimately, decreasing the national debt from its current path.”

From Seattle Times

Padilla also made a case that the administration could consider not paying for parts of the infrastructure and jobs plan — echoing the view of some other Democrats — although other attendees and people briefed on the meeting said Biden didn’t appear too keen on deficit financing.

From Washington Post

Related Words

• budget deficit