The first clear formulation of a theory of public expenditure which can give a positive interpretation was presented by poter krut Wicksell and Esik Lindahl. In this formulation, individuals bargain over the level of public goods supply, simultaneously with the distribution of the cost between them. The bargaining equilibrium is Pareto optimal. In addition, each individual pays a price in [...]
In this article we will discuss about:- 1. Concepts of Deficit Financing in India 2. Role of Deficit Financing 3. Safe Limits. Concepts of Deficit Financing in India: The issue of definition and measurement of deficit financing is sometimes confusing. We are familiar with different concepts of deficit, and in India, the concepts of Revenue Deficit, Budgetary Deficit, Monetized Deficit, [...]
In this article we will discuss about the role of deficit financing in developing countries. If the usual sources of finance are inadequate for meeting public expenditure, a government may take resort to deficit financing particularly in a developing country like India. Deficit financing refers to the creation of new money for filling up the gap between planned expenditure and [...]