deficit financing
Spending beyond revenue
Deficit financing is the practice of funding government spending by borrowing money rather than raising taxes or cutting other expenditures.
When a government spends more than it collects in revenue, it covers the shortfall by issuing bonds or taking on debt.
Proponents argue it can stimulate economic growth during recessions, while critics warn of mounting national debt and future interest burdens.
The infrastructure bill relied heavily on deficit financing.
- government bondsState-issued debt securities
- sovereign debtMoney governments owe creditors
- fiscal policyState spending and taxation
- crowding outWhen one thing excludes another
- debt restructuringRenegotiating borrower payment terms
stimulus packages · quantitative easing · printing money · public debt · monetary policy · fiscal stimulus · national debt · fiscal cliff · government spending · tax and spend · Keynesian economics · budgetary policy · bond market · bond yields · interest payments · treasury notes · public expenditure · shortfall
deficit financingbalanced budget
Spending matching revenue
budget surplus · fiscal surplus · debt repayment · pay-as-you-go · debt reduction
deficit financingfiscal austerity
Reduced government expenditure policy
fiscal restraint · spending cuts · fiscal conservatism · retrenchment · belt-tightening
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