deficit spending

American  

noun

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

---

Etymology

Origin of deficit spending

First recorded in 1935–40

Example Sentences

Double-digit raises have been promised to union workers by a school system that for months has proclaimed that it is in dire financial straits, trapped in deficit spending and facing potential insolvency in four years.

From Los Angeles Times • Apr. 15, 2026

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

In 2001, during a civil conflict, the economy shrank 4.5% because of decreased trade, intermittent border closures, increased deficit spending on security needs, and investor uncertainty.

From The 2008 CIA World Factbook by United States. Central Intelligence Agency

Related Words

• budget deficit