# What does it mean to say that deficits are financed by debt issue?

Let $B_t$ be real net government debt, let $G_t$ be public spending, let $T$ be net tax revenue (i.e, tax income minus transfers), and ignore everything else. One can show, $$B_{t+1} = (1+r)B_t + G - T$$

If I say that deficits are financed by debt issuance, what does this mean? How would I represent that in the formula?

$$(G+rB_t)-T=B_{t+1}-B_t.$$