Deficit spending refers to the practice of a government spending more money than it receives in revenue, typically through borrowing. This approach is often utilized during economic downturns to stimulate growth by increasing public expenditure on infrastructure, services, and welfare programs. While deficit spending can help mitigate recessions, it carries risks, such as increasing national debt and future inflation concerns. Policymakers must balance short-term economic objectives with long-term fiscal sustainability, as persistent deficits can undermine investor confidence and impact economic stability.