World English Dictionary
deficit financing
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

Collins English Dictionary - Complete & Unabridged 10th Edition
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Main Entry:  deficit financing
Part of Speech:  n
Definition:  the financing of government spending by borrowing more money rather than taxation's 21st Century Lexicon
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American Heritage
Cultural Dictionary

deficit financing definition

A government policy of financing large public expenditures by borrowing money rather than by raising taxes; also called deficit spending.

The American Heritage® New Dictionary of Cultural Literacy, Third Edition
Copyright © 2005 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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Example sentences
For years it engaged heavily in the risky business of deficit financing, and it
  outmaneuvered the dozing downtown bureaucrats.
The higher tax revenue will allow the government to increase its deficit
  financing via the banking sector.
Deficit financing was the only solution, and the government started borrowing
  at home and abroad.
According to this theory, deficit financing could be used to stimulate economic
  growth and increase employment.
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