Liberal Dictionary English Dictionary
noun
- (especially of a government) expenditures in excess of public revenues, made possible typically by borrowing.
noun
- 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 unemploymentAlso called: compensatory finance, pump priming
A government policy of financing large public expenditures by borrowing money rather than by raising taxes; also called deficit spending.