| deficit financing | |
| —n | |
| compensatory finance, Also called: 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 | |
| Main Entry: | deficit financing |
| Part of Speech: | n |
| Definition: | the financing of government spending by borrowing more money rather than taxation |
A government policy of financing large public expenditures by borrowing money rather than by raising taxes; also called deficit spending.