Topics:
CH-3: LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL, Indian Economic Development, NCERT Books
Deficit Financing
When government expenditure is more than income, the government borrows to finance the:
- Surplus
- Deficit — Correct Answer
- Revenue
- Profit
Explanation:
Correct Answer Explanation
When expenditure exceeds income, the government borrows to finance the deficit.
Key Points:
- Borrowing from banks, people within the country, and international financial institutions.
- Government generates funds through taxation and public sector enterprises.
- In the 1980s, government expenditure exceeded revenue by large margins.
📚 About this Topic — CH-3: LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL
This multiple choice question is from CH-3: LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL, Indian Economic Development, NCERT Books. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-3: LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL to strengthen your preparation.
