deficit financing


Also found in: Thesaurus, Financial, Wikipedia.

deficit financing

n
(Banking & Finance) 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. Also called: compensatory finance or pump priming
Translations

deficit financing

n (Fin) → Defizitfinanzierung f, → Finanzierung fdurch Staatsverschuldung
References in periodicals archive ?
The credit rating firm said the issuance of a $2.1 billion (Sh210 billion) Eurobond in May 2019 allowed the government to refinance a maturing $750 million Eurobond and cover some of its deficit financing for the fiscal year.
The goal of the debt limits in the state constitution "was to ensure that the state's elected officials would act in a fiscally responsible manner -- that they would cut spending or make structural reforms when needed, rather than continually using deficit financing to 'kick the can down the road' for future generations to resolve," the complaint said.
1.405 trillion will not overcome the resource gap and the estimated budgetary deficit of Rs.3.15 trillion will certainly be filled with deficit financing by borrowing from banks and printing of more currency.
These included general revenues, expenditure levels, actual deficit and deficit financing instruments, and approved a number of steps aimed at achieving financial sustainability.
The subcommittee was informed that under the available resources, expenditure for civil administration, pensions, defence and the entire Public Sector Development Programme through deficit financing was not sustainable.
The proposal is to cap external deficit financing at 38 percent, while raising domestic borrowing to 62 percent.
The recovery in issuance stems from higher deficit financing needs amid moderate oil prices, in particular for sovereign issuers in the GCC, higher sukuk refinancing needs especially in Malaysia, and a gradual increase in the share of sukuk in major issuers' fiscal deficit financing.
The bonds have been launched to raise funds for the current account deficit financing, as the gross official foreign currency reserves remained at $8.2 billion only, despite loans from Saudi Arabia and United Arab Emirates.
He said that the projected total revenue for the year 2019 is ?775.231billion, of which ?606.291billion is expected to be generated internally, ?168.940billion is expected from Federal Transfers while a total of ?77.086billion will be sourced through deficit financing within our medium-term expenditure framework.
This shows that the financing and deficit financing functions can be managed properly.
Fitch estimates sovereign gross financing needs will total 5.2% of GDP in the remainder of the year, including 1.8% of GDP in deficit financing and USD1.9 billion (3.3% of GDP) in scheduled debt maturities.
'The country has been moving toward domestic debt in funding its deficit financing to reduce exchange risks.