Deficit Spending is a situation in which expenditures of a government, private company, or individual exceed its revenues over a certain period of time. The entity is operating at a deficit as it is not generating enough revenues to meet its budget. In this case excess spending needs to be financed through loans.
Additional meaning of Deficit spending:
Like other institutions, governments operate on a budget -- or try to do so. When the expenditures of a government (its purchases of goods and services, plus its tranfers (grants) to individuals and corporations) are greater than its tax revenues, it creates a deficit in the government budget. When tax revenues exceed government purchases and transfer payments, the government has a budget surplus (as in the late 1990s in the United States).