Budget 2026: What is deficit financing and why is it important for developing countries like India?
MSN
Budget 2026: What is deficit financing and why is it important for developing countries like India?
India Budget: Governments resort to deficit financing when spending exceeds earnings, often to stimulate growth through tax cuts or infrastructure projects. While crucial for developing nations like India, it risks inflation and increased production costs, potentially deterring investment and widening economic inequality if overused.
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