Definition, Meaning & Synonyms
deficit-spending
noun
ˈdɛfɪsɪt ˈspɛndɪŋ
Definition
Deficit spending refers to the practice of a government spending more money than it receives in revenue, resulting in a budget deficit.
Examples
- The government resorted to deficit spending to fund public infrastructure projects.
- Critics argue that continuous deficit spending can lead to unsustainable national debt.
- During a recession, many economists recommend increasing deficit spending to boost economic activity.
Meaning
When a government engages in deficit spending, it is borrowing money to cover the gap between its expenditures and its revenue. This is often done to stimulate economic growth or fund public projects when tax revenues are insufficient.
Synonyms
- borrowed funds
- budget shortfall
- negative balance
