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

“The impact of deficit financing on longer-run growth will be determined by how much government borrowing will ‘crowd out’ private investment.

From Washington Post • Nov. 21, 2017

Even ordinary deficit financing has proven unpopular with debt-wary governments.

From The Wall Street Journal • Aug. 24, 2016

The expedient of deficit financing inevitably is resorted to and debt accumulates.

From Forbes • Feb. 3, 2015

Including coupon payments and deficit financing, its requirements until June are put at 12 to 15 billion euros.

From Reuters • Apr. 6, 2011

This also was quite true, except that Mrs. Everleigh had not made it quite clear that the management of her money was of the form generally known as deficit financing.

From Arcadian Adventures with the Idle Rich by Leacock, Stephen

Related Words

• budget deficit