7. 1: Elaborate what you understand by deficit financing. What do we indicate by deficit financing this is a strategy or ways to management of money which when spending is more than accumulated at the same time frame. To be able words this is referred to budget deficit, this process is used in business that is small, household budgets, in companies and also in, governments sector mostly in all the level. If deficit funding is used correctly it can help to release a string of the event..