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

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 • Apr. 6, 2022

“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

On the minus side, public sector wage   increases and regional peacekeeping commitments have led to   continued inflationary deficit financing, depreciation of the cedi,   and rising public discontent with Ghana's austerity measures.

From The 2001 CIA World Factbook by United States. Central Intelligence Agency

Related Words

• budget deficit