Definitions for "crowding out"
A situation in which the government is borrowing heavily while businesses and...
the fact that borrowing money for public investment reduces the amount of money available for private investment
The possibility that an increase in one form of spending may cause another form to fall. This could happen in various ways. Suppose for example that government spending on public work rises. This might use scarce resources, such as skilled engineers, diverting them from alternative investment projects, which are thus delayed. Alternatively, if increased demand causes inflation, this might lead to tighter monetary policy, thus cutting forms of spending. Finally, if private investors are made nervous by increased government debt, a rise in public works might scare off private investment. Total crowding out occurs if other spending falls by 100 per cent of the rise in public works. Partial crowding out occurs if other spending falls, but by less than spending rises. It is possible that crowding in may occur, that is, other spending is actually increased, if conditions are such that the Keynesian multiplier works, or through favourable effects of an overall rise in spending on the confidence of private investors. The currency liability of Central government constitutes one-two-five rupee coins, small coins, and other commemorative coins issued by the government mints.
Crowding out is the process in biology where the introduction of new species to an environment causes new competition with previously existing species, usually while radically changing the environment.