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Deficit-producing

Adjective describing a situation, policy, or economic activity that results in a deficit, meaning expenses exceed revenues. Often used in the context of budgeting, finance, and economics, it highlights a negative fiscal condition that can lead to broader financial challenges if not addressed.

Deficit-producing meaning with examples

  • The recent tax cuts implemented by the government have been criticized for being deficit-producing, as they significantly reduce federal revenue without corresponding cuts in spending, leading to an unsustainable fiscal trajectory in future years.
  • Many economists warn that the new healthcare initiative could become deficit-producing if not carefully controlled, as initial projections show it may cost more than anticipated while offering limited benefits to the public when compared to expenses incurred.
  • During the fiscal year, the company's aggressive expansion strategy was labeled as deficit-producing due to the high operational costs that outpaced revenue generation, prompting management to reevaluate their financial planning and cost control measures.
  • The township's decision to build a new community center was seen as deficit-producing by local residents, as the project was expected to lead to increased taxes and borrowing costs without a clear projection of future revenue benefits.

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