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"deficit financing" Definitions
  1. the financing of government expenditures by borrowing rather than by taxation

63 Sentences With "deficit financing"

How to use deficit financing in a sentence? Find typical usage patterns (collocations)/phrases/context for "deficit financing" and check conjugation/comparative form for "deficit financing". Mastering all the usages of "deficit financing" from sentence examples published by news publications.

Deficit financing will continue to deplete the Reserve Fund, reducing financing flexibility.
The pace of deposit drawdown has slowed as deficit financing has relied increasingly on borrowing.
Deficit financing by governments makes sense as a way of stimulating demand in the short term.
However, he said execution could be "easier said than done," especially given the amount of deficit financing required.
The RFFG cannot be used for deficit financing, so Kuwait will issue debt and draw on the GRF.
Some Republicans want to make the tax cut temporary, so that they can more easily use deficit financing.
A senior opposition MP told Reuters that the IMF's restriction on deficit financing is unfair because it impinges on national sovereignty.
Congress followed up with another round of deficit-financing in December 2015 with $680 billion of tax cuts (largely for business).
We expect public debt to increase to 36% of GDP in 2018 from 27% in 2015 as a result of deficit financing.
For a small outfit like Desilu, deficit-financing both "Star Trek" and their other new show, "Mission Impossible," required some accounting wizardry.
"As a result, foreign bond investment by euro area investors can slow, which will make U.K. external deficit financing more difficult," weighing on the sterling.
According to the independent Congressional Research Service (CRS), "Deficit financing tends to crowd out greater levels of private investment in better economic conditions," thus impacting American jobs.
Under the IMF programme, Ghana was supposed to present a bill for zero deficit financing from 2015 but parliament instead passed a law allowing 5 percent financing.
Congress created base erosion in Puerto Rico by phasing out 936 which also helped foster the recession and deficit financing which led to the ongoing debt crisis.
"There is still a chance it could increase a bit further, but the bottom line ... is they are not going to issue deficit-financing bonds," Shiraishi said.
Borrowing and debt levels increased during the recession and initial recovery for deficit financing and economic stimulus purposes, consistent with how Canadian provinces manage economic and revenue cyclicality.
The explanation is a phenomenon known as "fiscal illusion" whereby deficit financing leads the public to perceive programs as relatively costless; that fuels demand for larger, not smaller, government.
MinFin plans to increase net borrowings to RUB1 trillion, so the remaining RUB1.8 trillion of deficit financing (RUB2.1 trillion in 2016) should be met mainly by selling reserves to the CBR.
Wall Street has used the "trade war" panic to reprice assets in an accelerating economy facing Federal Reserve announcements of "gradual" interest rate increases and the U.S. Treasury's soaring deficit financing needs.
Even if one were to introduce the 70 percent income tax rate being proposed by leaders on the left, this would still involve a huge increase in deficit financing and thus the debt.
"At first GBP may suffer as a result from the UK shifting to the left-leaning side of politics and investors' expectations of larger deficit financing," analysts from Japan's Nomura said in a note.
"For countries like Brazil and India — which have seen sharp declines in their current account deficits and a big improvement in deficit financing …the impact of any Trump trade policies that are directed toward Mexico and China will have minimal impact," he added.
Fed Chair Janet Yellen and the central bank will have a say, at least in the first year until Trump can appoint his own chair, about how much room to run they give the new president in terms of deficit financing and growth.
"We are managing the 2019 state budget because pressure on the revenue side is huge in the current economic situation," Indrawati told reporters after attending President Joko Widodo's first cabinet meeting, adding that she had issued a decree to allow an increase in deficit financing.
Even if they were inclined to set aside their professed aversion to deficits to pass a big tax cut, their scope for deficit financing has now been narrowed by the floods in Houston, which will force them to borrow and spend for relief and recovery efforts.
That said, Nancy Pelosi certainly believes pay-as-you-go is the way to proceed, and I personally believe while you might want to have a transition period where you're deficit-financing, you have to have a sustainable system that is financed in ways that are transparent.
When the state was heavily rural and firmly controlled by a debt-phobic, conservative Democratic oligarchy, it was an article of faith to decry as irresponsible the deficit-financing that has become routine in Washington, DC. But in suburban-dominated Virginia, federal beneficence fuelled the growth of the counties immediately flanking Washington: Arlington, Fairfax, Prince William and Loudoun.
This should provide more clarity on fiscal reforms in support of the authorities' target of balancing the budget by 2020 (assuming an oil price of USD50/b), and on deficit financing plans once the Reserve Fund has been depleted (which we expect in 2017, although the National Wealth Fund will remain a source of liquid assets).
The following are key details of the fiscal 21.4 budget and comparisons with this year's initial plans: REVENUE (trln yen) (pct change) - Tax 25.9763 +20.0 - Non-tax revenue 1.93 +21.9 - New government bonds 21 -2117.5400 - Construction bonds 6.0970 +0.8 - Deficit-financing bonds 28.2728 -0.4 —————————————————————————————- TOTAL 97.4547 +0.8 - National debt service 13 -0.4 - General expenditures 58.3591+0.9 - Social security 32.4735 +1.6 - Defense 5.1251 +1.4 - Public works 5.9763 +0.0 - Local allocation tax grants 15.5671 +1.9 —————————————————————————————- ($1 = 117.5400 yen) Reporting by Tetsushi Kajimoto and Minami Funakoshi; Editing by Shri Navaratnam
New York, NY: New York City University Press. p. 83 Television deficit financing is said to be a risk for both sides because they lead deficit financing became the norm for scripted television. The network pays a license fee to the studio for the right to air the show.
Apart from its deficit financing, Bolivia remained overwhelmingly dependent on commodity exports, specifically tin and silver, making it highly susceptible to market changes.
Television deficit financing is the practice of a network or channel paying the studio that creates a show a license fee in exchange for the right to air the show, and in which the license fee is less than the cost of the show. A major broadcast network will ask a program producer to share in the financial risk when considering adopting a new program to its schedule; at least for the first season of the series. Deficit financing is often the norm for scripted television, this came during the Post Network Era. Deficit financing however, does not cover the cost of product, which leads to a deficit for the studio.
Television deficit financing also helps to minimize the substantial risks and costs of developing programs for the networks and gives studios initial benefits as well. The studio bears the difference between production costs and licensing fees, but recoups significantly more money if the show is sold in syndication. The main benefit of deficit financing comes from syndication, this offers different windows for the program, i.e. first run syndication, second run, cable, etc.
Some have been said to be creative. The other aspect of deficit financing is broadcast syndication. Syndication is where the huge money is produced. There are different windows in syndication.
There is both good and bad to deficit financing, it gives the studios the opportunity to gain major rewards, but they are also taking most of the risk. For networks, they are minimizing most of their risk, but they risk losing out on most profit. If the network orders enough episodes of a show, the studio can then sell the series to other markets. Deficit financing minimizes risks and costs of developing programs for networks.Lotz, Amanda D. (2007) “The Television Will Be Revolutionized”.
Deshmukh's term as Finance Minister covered the period of the First Five Year Plan. He employed deficit financing as a key tool in bringing about planned investment but inflation and revenue deficits became major challenges during this period. Deshmukh was also chairman of a panel of economists that recommended the proposed Second Five Year Plan with its capital intensive model of development. He envisioned a significant role for the village and cottage industries in curbing unemployment and inflation caused by deficit financing and got the Congress Working Committee to approve the draft plan.
Deficit financing occurs when the license fee for a show doesn't fully cover production fees. A studio has ownership of the production, but as license fees are handed out in exchange to air a show, the phrase deficit financing comes into play as costs were not being met and paid. From the late 1960s through the mid-1990s special regulations from financial regulation's and syndication's rules created relations between television networks and independent production companies. These rules stated that ownership of the rights to the programs reverted to the producer/production company after a specified number of network runs (syndication).
The key is license fee does not cover the production cost. It leads to a "deficit" for the show. The studio then keeps ownership of the show and can resell it to other markets. The difference between studios and networks are then collaborated into deficit financing.
"The myth of Hitler's role in building the German autobahn". Deutsche Welle. Retrieved 4 August 2012. Hjalmar Schacht created a scheme for deficit financing, in which capital projects were paid for with the issuance of promissory notes called Mefo bills, which could be traded by companies with each other.
The license fee does not fully cover the costs of production – hence the "deficit" of deficit financing.Lotz, Amanda D. (2007) “The Television Will Be Revolutionized”. New York, NY: New York University Press. P. 83 Deficit financing developed after the varied risks and rewards were determined and carried out through film financing.
The Swedish Socialists formed a government in 1932. They broke with economic orthodoxy during the depression and carried out extensive public works financed from government borrowing. They emphasised large-scale intervention and the high unemployment they had inherited was eliminated by 1938. Their success encouraged the adoption of Keynesian policies of deficit financing pursued by almost all Western countries after World War II.
There was a change of government in January 1933. The authorities now lost no time in transforming Germany into a one-party dictatorship. Through a combination of deficit financing and the pendulum of the economic cycle, it became possible to re-open the hospital and nursing academy in 1934. In keeping with the spirit of the times, the institution now had an uplifting new name.
The rapid growth in population slowed down the growth in the per capita income. The target growth rate was 4.5% and the actual growth rate was 4.27%. The plan was criticized by classical liberal economist B.R. Shenoy who noted that the plan's "dependence on deficit financing to promote heavy industrialization was a recipe for trouble". Shenoy argued that state control of the economy would undermine a young democracy.
The established traders at first got the Colonial Office to pass rules inhibiting competition from traders willing to set up bases further inland, but with some difficulty Egerton persuaded the officials to reverse their ruling. Sir Walter Egerton (far right) with his wife and other westerners in Lagos, c. 1910 Egerton was a strong advocate of colonial development. He believed in deficit financing at certain periods of a colony's growth, which was reflected in his budgets from 1906 to 1912.
As such he had to deal with attempts of the old elites to water down his new system of taxation that had been implemented only a few months before over much opposition. However, at first he gained the support of the new king, who had been impressed by his warnings about the dire state of the Dutch economy at the time. Revenues under the new system were falling short of expectations, and the kingdom therefore had to rely even more than before on deficit financing.
Official currency substitution helps to promote fiscal and monetary discipline and thus greater macroeconomic stability and lower inflation rates, to lower real exchange rate volatility, and possibly to deepen the financial system. Firstly, currency substitution helps developing countries, providing a firm commitment to stable monetary and exchange rate policies by forcing a passive monetary policy. Adopting a strong foreign currency as legal tender will help to "eliminate the inflation-bias problem of discretionary monetary policy". Secondly, official currency substitution imposes stronger financial constraint on the government by eliminating deficit financing by issuing money.
Retrieved 4 August 2012. Above all, Hitler's priority was rearmament and the buildup of the German military in preparation for an eventual war to conquer Lebensraum in the East. The policies of Schacht created a scheme for deficit financing, in which capital projects were paid for with the issuance of promissory notes called Mefo bills, which could be traded by companies with each other. This was particularly useful in allowing Germany to rearm because the Mefo bills were not Reichsmarks and did not appear in the federal budget, so they helped conceal rearmament.
His efforts have overhauled the school inspection process; implementing both regulatory reforms and legislative changes that ensures school buildings are inspected and administrators are held accountable. Ken achieved a toll freeze/discount for Rockland commuters over the new Tappan Zee/Mario M. Cuomo Bridge and has aggressively fought for investments by the MTA and NJ Transit who too often ignore West of Hudson commuters. Ken co-authored the bill that set up a deficit financing program, with annual Comptroller review, to help Rockland County get out of a $96 million deficit and established oversight and additional funds for the East Ramapo School District.
As such, almost immediately after coming to power, they embarked on a vast program of military rearmament, which quickly dwarfed civilian investment. During the 1930s, Nazi Germany increased its military spending faster than any other state in peacetime, and the military eventually came to represent the majority of the German economy in the 1940s.Evans, Richard J., The Third Reich at War (New York: Penguin, 2008), p. 333. This was funded mainly through deficit financing before the war, and the Nazis expected to cover their debt by plundering the wealth of conquered nations during and after the war.
Technology got better during the multichannel television era, in the network era the television sets didn't have color or a remote control. The television viewers had to watch TV in black and white and they had to get up and turn the station manually. A fundamental aspect of the network era was the limited ability of networks to reach viewers, which defined how the television is essence, was used. Distribution windows were numbered as a result of producers reselling original-run episodes to international markets, independent stations and broadcast affiliates to combat the costs of deficit financing.
But already by that time numerous Muslim scholars had written on economic issues, and early Muslim leaders had shown sophisticated attempts to enforce fiscal and monetary financing, use deficit financing, use taxes to encourage production, the use of credit instruments for banking, including rudimentary savings and checking accounts, and contract law.Hosseini (2003), p. 33. Among the earliest Muslim economic thinkers was Abu Yusuf (731-798), a student of the founder of the Hanafi Sunni School of Islamic thought, Abu Hanifah. Abu Yusuf was chief jurist for Abbasid Caliph Harun al-Rashid, for whom he wrote the Book of Taxation (Kitab al-Kharaj).
Most major North American studio and network contracts (incl. basic cable) are collateralized/factored by the bank at 100% of the contract value, and the lender just takes a basic origination/setup fee. Splitting the roles of studios and networks necessitated a means for financing television series appropriate to the varied risks and rewards inherent in the separation. A practice known as "deficit financing" consequently developed – an arrangement in which the network pays the studio that make a show a license fee in exchange for the right to air the show, but the studio retains ownership.
The pilot episode may be more expensive than a regular episode. In 2004, Lost's two-hour pilot cost $10 to $14million, in 2008 Fringes two-hour pilot cost $10million, and in 2010, Boardwalk Empire was $18million for the first episode. In 2011, Game of Thrones was $5 to $10million, Pan Am cost an estimated $10million, while Terra Novas two-hour pilot was between $10 to $20million. Many scripted network television shows in the United States are financed through deficit financing: a studio finances the production cost of a show and a network pays a license fee to the studio for the right to air the show.
But already by that time numerous Muslim scholars had written on economic issues, and early Muslim leaders had shown sophisticated attempts to enforce fiscal and monetary financing, use deficit financing, use taxes to encourage production, the use of credit instruments for banking, including rudimentary savings and checking accounts, and contract law.Hosseini (2003) p 33 Among the earliest Muslim economic thinkers was Abu Yusuf (731-798), a student of the founder of the Hanafi Sunni School of Islamic thought, Abu Hanifah. Abu Yusuf was chief jurist for Abbasid Caliph Harun al-Rashid, for whom he wrote the Book of Taxation (Kitab al-Kharaj). This book outlined Abu Yusuf's ideas on taxation, public finance, and agricultural production.
We are at war with a specific network, al-Qaeda, and its terrorist affiliates." It also called for engagement with "hostile nations," closer relations with China and India, and a focus on strengthening the US economy. Secretary of State Hillary Clinton called democracy and human rights central to the strategy, adding that "We cannot sustain this level of deficit financing and debt without losing our influence, without being constrained about the tough decisions we have to make." In President Obama's 28 March 2011 speech on Libya justifying airstrikes against the Gaddafi regime, the President stated the United States can use military force "decisively, and unilaterally when necessary to defend our people, our homeland, our allies, and our core interests.
The broadcast networks aired many action-adventure programs from the 1950s to the 1980s. By the late 1980s, however, increasing production costs made them less attractive to the networks. Studios found that reruns of one-hour dramas did not sell as well as sitcoms, so they were unable to fully recoup the shows' costs using the traditional deficit financing model. When NBC canceled the television series adaptation of Fame after only two seasons, the producers made special arrangements with LBS Communications, which resulted in MGM reviving the series for first-run syndication in the fall of 1983, where it continued for four more seasons, with the last first-run episode airing in the U.S. on May 18, 1987.
The quantity theory of money, in contrast, claims that inflation results when money outruns the economy's production of goods. Currency and banking schools of economics argue the RBD, that banks should also be able to issue currency against bills of trading, which is "real bills" that they buy from merchants. This theory was important in the 19th century in debates between "Banking" and "Currency" schools of monetary soundness, and in the formation of the Federal Reserve. In the wake of the collapse of the international gold standard post 1913, and the move towards deficit financing of government, RBD has remained a minor topic, primarily of interest in limited contexts, such as currency boards.
In response to the dire financial situation of the Chinese Nationalist government, the biggest privately owned bank in China, the Bank of China, tried to loosen their ties with the Kuomintang government. The Bank of China soon would try to liquidate all of their holdings that were denominated in Chinese government bonds, even at a short-term loss. Generally speaking smaller private banks would follow the Bank of China in its decisions, so this move had become a worrying development for the Kuomintang, it had become very likely that a large-scale liquidation of Chinese government bonds by private banks would occur unless the government would act soon. If this would occur the Chinese Nationalist government would no longer be able to rely on deficit financing for their income, and the government was forced to act in desperation.
Although deficit financing places minimal financial risk on the networks, they lose out on the future profits of big hits since they are only licensing the shows. Costs are recouped mainly by advertising revenues for broadcast networks and some cable channels, while other cable channels depend on subscriptions. In general, advertisers, and consequently networks that depend on advertising, are more interested in the number of viewers within the 18–49 age range than in the total number of viewers. Advertisers are willing to pay more to advertise on shows successful with young adults because they watch less television and are harder to reach. According to Advertising Age, during the 2007–08 season, Grey's Anatomy was able to charge $419,000 per commercial, compared to only $248,000 for a commercial during CSI, despite CSI having almost five million more viewers on average.
As there were now no restraints on the power of the Chinese government to turn the handle of the printing press to produce more banknotes, the Chinese Central Bank policy soon led to monetary disaster, this disastrous outcome was only made worse with the coming of China's war with Japan. The rampant deflation also severely affected the Chinese Nationalist government as their deficit financing scheme had become an even bigger burden for them. The Chinese Nationalist government quickly began to enact policies to halt the server deflation by creating controls on the export of silver out of China. But these new controls were proven to be largely ineffective as the Chinese government had no say over the operation of foreign banks in China which exported silver out of China and illegal smuggling of silver out of China had become a profession in of itself.
Note: 24.6% rate is based on 2005 PPP at $1.25 per day, International dollar basis, According to a 2005–2006 survey,Nutrition, Fast Facts, UNICEF (2009) India had about 61 million children under the age of 5 who were chronically malnourished. A 2011 UNICEF report stated that between 1990 and 2010, India achieved a 45 percent reduction in under age 5 mortality rates, and now ranks 46th of 188 countries on this metric. Since the early 1960s, successive governments have implemented various schemes to alleviate poverty, under central planning, that have met with partial success. In 2005, the government enacted the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), guaranteeing 100 days of minimum wage employment to every rural household in all the districts of India. In 2011, it was widely criticised and beset with controversy for corrupt officials, deficit financing as the source of funds, poor quality of infrastructure built under the programme, and unintended destructive effects.
However, the Chinese government appeared to be a financial black hole and the heads of China's largest banks began to suspect that the Chinese Nationalist government wasn't able to pay back their debts, this was as the Chinese government continued to increase its debt without having any way of servicing it to those it owed. This led to some bankers to stop giving out more loans to the Chinese Nationalist government, but as a response Chiang started treating these bankers the same as he had done his political adversaries and would imprison them or confiscate their property on the grounds that these bankers were being politically subversive. The Chinese Nationalist government had become extremely dependent on deficit financing as the Kuomintang saw introducing widespread taxation as being politically unattractive as well as an administrative nightmare to implement all over China, meaning that they were extremely dependent on receiving loans from private banks. Chiang Kai-Shek saw that deficit spending as the most expedient method for financing the Nationalist government.
Other salient points. of the Bombay plan were an active role by government in deficit financing and planning equitable growth, a transition from an agrarian to an industrialized society, and--in the event that the private sector could not immediately do so--the establishment of critical industries as public sector enterprises while simultaneously ensuring a market for the output through planned purchases. Although the Bombay Plan did not itself propose a socialist agenda, "virtually all" commentators acknowledge "that there is a direct line of continuity from the Bombay Plan of 1944-1945 to the First Five-Year Plan in 1950." An alternative line of reasoning is that the Bombay Plan was a reaction to the widespread social discontent of the 1940s (resulting from unprecedented industrial growth during wartime), and a product of the fear that the movement against colonial rule would become a movement against private property.. The Bombay Plan reaped criticism from all quarters: the far left criticized the capitalistic background of the Plan's authors or asserted that the plan did not go far enough.

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