Deficit financing means that the Government borrows money from the........

Economic Affairs Public Finance and Debt Management

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Deficit financing means that the Government borrows money from the

RBI

Local Bodies

Big Businessman

IMF

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Explanation:

Deficit financing is a method of meeting government deficits through the creation of new money. The deficit is the gap caused by the excess of government expenditure over its receipts. The expenditure includes disbursement on revenue as well as on capital account. At the time of deficit financing government borrows money from the RBI. Hence option 1st is correct.