After reading this article you will learn about:- 1. Meaning and Definition of Deficit Financing 2. Objectives of Deficit Financing 3. Effects 4. Limitations. Meaning and Definition of Deficit Financing: The term deficit financing means the direct addition to gross national expenditure through budget deficits whether the budget deficits are on revenue or on capital account. This policy implies that [...]
After reading this article you will learn about deficit financing as a tool of economic development. Deficit financing is an extraordinary fiscal device of development finance in modern times. In developed countries J.M. Keynes, popularized this concept, with a view to fight and control depression which is often accompanied by unemployment. Prof. J.M. Keynes, through the instrument of pump priming, [...]
After reading this article you will learn about:- 1. Concept of Functional Finance 2. Rules of Functional Finance 3. Roles. The Concept of Functional Finance: The chief exponent of functional finance was Prof. Abba P. Lemer who believed that fiscal measures should be judged only by their effects. The way fiscal measures function in an economy is called functional finance. [...]