Question

To reduce fiscal deficit, government borrows money from the public. Do you think it

poses an increased burden on the government? Give your views.​

Answer 1

Answer:

Government borrows through issue of government securities called G-secs and Treasury Bills. Borrowing is a loan taken by the government and falls under capital receipts in the Budget document.

Answer 2

Explanation:

Measures to Reduce Government Deficit

Increased emphasis on tax-based revenues and appropriate measures to reduce tax evasion. Reduction in subsidies by the government will also help reduce the deficit. Try and avoid unplanned expenditures. Borrowing from domestic sources.