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deficit financing

   Also found in: Dictionary/thesaurus, Financial, Wikipedia 0.01 sec.

deficit financing

In government, the practice of spending more money than is received as revenue, the difference being made up by borrowing or minting new funds. The term usually refers to a conscious attempt to stimulate the economy by lowering tax rates or increasing government expenditures. Critics of deficit financing regularly denounce it as an example of shortsighted government policy. Advocates argue that it can be used successfully in response to a recession or depression, proposing that the ideal of an annually balanced budget should give way to that of a budget balanced over the span of a business cycle. See also John Maynard Keynes; national debt.



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While focusing on the vertical integration of the resources, the meeting agreed to work more as the conservative data in hand would result in increased deficit financing.
The deficit financing plan is included in the draft 'special statute for post-Typhoon Morakot reconstruction work,' passed by the Executive Yuan (the Cabinet) on Sept.
The delay may have been due to "fiscal slippages" resulting from declining tax revenue and "substantial" military expenditure that forced the government to borrow from the central bank for deficit financing, according to Ali from Standard Chartered.
 
 
 
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