Though it is hailed by industry chambers, they stressed that an interest rate cut by RBI was imperative to spur investment, consumption and reduce pressure on bond yields due to increased government borrowings. Borrowing and deficit financing together will push up the deficit to more than 10 per...
For the financial year that begins on April 1, the government aims to raise Rs 1.2 trillion viadisinvestment. It also aims to mop up Rs 90,000 crore by selling its stake in public-sector banks and financial institutions. This is part of a plan to keep the fiscal deficit at 3.5% of gr...
It shows that the government would need to raise money by borrowing not just for financing its investment but also for fulfilling the consumption requirement. It creates a stock of debt and interest liabilities and pushes the government to reduce expenditure. Revenue Deficit is theDeficit on Revenue...