Q: 19 (IAS/2013)
question_subject:
Economics
question_exam:
IAS
stats:
0,214,237,219,75,129,28
keywords:
{'deficit financing': [0, 0, 0, 3], 'foreign debt': [0, 0, 0, 1], 'public debt': [0, 0, 0, 6], 'economic development': [0, 0, 1, 1], 'payments': [0, 0, 0, 1], 'india': [8, 1, 7, 13], 'balance': [0, 0, 1, 1]}
Deficit financing in India is used for economic development. It refers to the situation where the government spends more money than it collects as revenue, resulting in a budget deficit. To finance this deficit, the government borrows money from various sources, such as the Reserve Bank of India, domestic and foreign markets, and international financial institutions. This borrowed money is used to finance various developmental activities in the country, such as building infrastructure, providing social services, and promoting economic growth.