Definition of deficit financing in English English dictionary
Usually refers to deficits that are deliberately incurred as part of an effort to fight off a deflationary phase of the business cycle Deficits are financed by borrowing
a planned excess of expenditure over income Most governments often spend more than they raise in taxation, the difference being financed by borrowing (Bannock et al , 1992) (S6, II 1) chinese | russian
In government, the practice of spending more money than is received as revenue, the difference being made up by borrowing or minting new funds. The term usually refers to a conscious attempt to stimulate the economy by lowering tax rates or increasing government expenditures. Critics of deficit financing regularly denounce it as an example of shortsighted government policy. Advocates argue that it can be used successfully in response to a recession or depression, proposing that the ideal of an annually balanced budget should give way to that of a budget balanced over the span of a business cycle. See also John Maynard Keynes; national debt
A situation in which the Federal government's excess of outlays over receipts for a given period is financed by borrowing from the public
The borrowing of money by government agencies to procure revenue shortages Deficit financing may stimulate the economy for a while, but usually ends up being an economic hindrance by pushing up interest rates