Question

Explain the term:-
Deficit Financing ​

Answer 1

Answer:

Deficit Financing means the borrowing of funds by the government from the Reserve Bank and Public and by printing currency notes in huge quantity to make up the gap between its income and expenditure.

hope it helps you✌

Answer 2

Answer:

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.