wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

93. In India, deficit financing is used for raising resources for [2013 - I]


A

a) Economic development

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B

b) Redemption of public debt

No worries! We‘ve got your back. Try BYJU‘S free classes today!
C

c) Adjusting the balance of payments

No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
d) Reducing the foreign debt
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is A

a) Economic development


Ans:a

Deficit financing refers to the difference between expenditure and receipts. In public finance, it means the govt. is spending more than what it is earning. Deficit financing is a necessary evil in a welfare state as the states often fail to generate tax revenue which is sufficient enough to take care of the expenditure of the state. The basic intention behind deficit financing is to provide the necessary impetus to economic growth by artificial means.


flag
Suggest Corrections
thumbs-up
1
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Debts and Deficits
ECONOMICS
Watch in App
Join BYJU'S Learning Program
CrossIcon