Deficit financing in India

Deficit financing refers to the practice of a government spending more money than it collects in revenue, and financing this deficit through borrowing (typically from the central bank or capital markets). In India, deficit financing is primarily used to finance expenditure for economic development including infrastructure, education, healthcare, and social programs. While deficit financing may have secondary effects on other economic variables, its primary purpose in the Indian context has been to promote economic development. Option (b), (c), and (d) are not the primary objectives of deficit financing in India. > Deficit Financing = Gov Expenditure > Gov Revenue = Funded by borrowing for development projects.