So how come government fund the Fiscal Deficit? Government can fund its Fiscal Deficit by the following ways: Extra taxation or impose of new excise duty. Print new currency as per the balance of payment surplus. Borrowing money from the domestic and global investors across the world by issuing government bonds and treasury bills. By […]Continue Reading... No Comments.
Fiscal Policy refers to the Government spending and income to run a country and support the growth. It mainly deals with the Budget allocation, Government spending, Government income, taxation, fiscal deficit, Government borrowings, current account deficit and surplus and trade deficit and surplus. All these terms will be explained in much detail. Let us first […]Continue Reading... No Comments.
In this write up we will try to explain the effect of higher fiscal deficit on currency exchange rate and import/export of a country. We will take the example ofIndiawhile explaining the same. High Fiscal deficit increases the government borrowing in the money market as the government borrows more to compensate the gap. Who are […]Continue Reading... No Comments.