Question

Does external commercial borrowings include in deficit financing

Answer 1

In the past, India has been cautious about regulations governing foreign currency borrowing. Given the infrastructure and investment deficit, the new government has taken bold steps to encourage external commercial borrowings (ECBs), i.e. foreign currency borrowing by companies in India.

Some of the key changes in the Master Circular on External Commercial Borrowings and Trade Credits, issued by the Reserve Bank of India (RBI) on 1 July, are analysed below.

Answer 2

Answer:

Hey friend!!

Deficit financing is the budgetary situation where expenditure is higher than the revenue. It is a practice adopted for financing the excess expenditure with outside resources. The expenditure revenue gap is financed by either printing of currency or through borrowing.

Types of it are:

•Budget deficit =      total expenditure – total receiptsRevenue deficit =    revenue expenditure – revenue receipts•

Fiscal Deficit = total expenditure – total receipts except borrowings

•Primary Deficit = Fiscal deficit- interest payments•

•Effective revenue Deficit-= Revenue Deficit – grants for the creation of capital  assets

•Monetized Fiscal Deficit = that part of the fiscal deficit covered by borrowing from    the RBI

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Define deficit financing? What methods are included in it. - Brainly.in