Tag Archives | Role of Deficit Financing

Role of Deficit Financing in Developing Countries | Economics

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 [...]

By Nipun S|2017-01-13T05:55:14+05:30January 13, 2017|Public Finance|Comments Off

Role of Deficit Financing in LDCs like India | Economics

Deficit financing has played an important role in many LDCs. Given the inability of their governments to mobilise sufficient resources to achieve a desired rate of growth, inadequate flow of foreign investment and lack of tax elasticity, the reliance on deficit financing is unavoidable. However, for deficit financing to be effective in LDCs the supply of output must be elastic. [...]

By Nipun S|2017-01-13T05:55:14+05:30January 13, 2017|Public Finance|Comments Off