In India, deficit financing is used for raising resources for
Detailed Explanation:
Deficit financing in India refers to the government meeting its budgetary gap by borrowing from the Reserve Bank of India (RBI) or through money creation.
It is primarily used for economic development purposes—financing infrastructure projects, five-year plans, and other capital expenditure—not for debt redemption or balance of payments adjustment, which are managed through other fiscal and monetary instruments.
Question 9 of 10 Fiscal Deficit, Revenue Deficit and Public Debt
Practice PYQ questions from this topic across all years
There has been a persistent deficit budget year after year. Which of the following ac...
Which one of the following is likely to be the most inflationary in its effect?