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deficit financing

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

deficit financing

In economics, a planned excess of expenditure over income, dictated by government policy, creating a shortfall of public revenue which is met by borrowing. The decision to create a deficit is made to stimulate an economy by increasing consumer purchasing and at the same time to create more jobs.



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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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