deficit spending

/ˌdɛfəsət spɛndɪŋ/

Deficit spending is when a government doesn't have the funds to pay for programs and takes out loans to cover the expense.

You can think of deficit spending this way: if you know you'll make $100 next month at your part time job, and you plan to buy new sneakers that cost $150, your personal deficit spending will be $50. You'll have to borrow that amount to cover the shoes. It's the same for governments, which sometimes use deficit spending, borrowing to cover a lack of revenue. The Latin root of deficit is deficere, "to fail or be deficient."

Definitions of deficit spending

1. noun

   spending money raised by borrowing; used by governments to stimulate their economy
   synonyms: compensatory spending, pump priming

   type of:

   disbursal, disbursement, outlay, payout, spending

   the act of spending or distributing money