Deficit Spending

Deficit spending is the practice of spending more money than a government or other entity takes in through revenue, resulting in a budget deficit. Governments may engage in deficit spending in order to stimulate economic activity, finance public goods and services, or address emergencies or other needs. Continue Reading Below

About Deficit Spending

Deficit spending is the practice of spending more money than a government or other entity takes in through revenue, resulting in a budget deficit. Governments may engage in deficit spending in order to stimulate economic activity, finance public goods and services, or address emergencies or other needs. However, persistent deficit spending can lead to an accumulation of debt and may have negative consequences in the long term.