When government needs to spend more money than it was expected to earn or generate in a particular period, to go for a desired level of growth and development.
Once the growth had taken place the extra money spent above the income would have been reimbursed or repaid.
It was first tried by US and followed by whole Euro-American governments. Through this route the developed world was able to come out of the menace of the Great Depression (1929).
India tried it in 1969 and since the 1970s it became a routine phenomenon, till it became wild and illogical, demanding immediate redressal. Finally, India headed for a slow but confident process of fiscal reforms that is also known as the process of fiscal consolidation.
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