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What is Deficit Financing?

When working with budgets, the aim of the exercise is to have enough money to pay debts and  bills, as well as some money over for unexpected events. Usually this is achieved relatively easily as budgets are adapted to conform to the amount of money available. There are, however, situations when there is a deficit in the budget, i.e., there is a gap between the money that you collected (or are paid) and the amount of money that you need to meet your budgetary commitments.

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