The fiscal deficit is the difference between the government’s total expenditure and its total receipts (excluding borrowing). Fiscal deficit in layman’s terms corresponds to the borrowings and liabilities of the government. The fiscal deficit can be financed by borrowing from the Reserve Bank of India (which is also called deficit financing or money creation) and market borrowing (from the money market, that is mainly from banks). But uncontrolled borrowing is not good for the economy, as a greater portion of the governments revenue will in future be used to pay back the interest of loans and the money available for social sector initiatives will reduce. Besides the fiscal deficits accumulate over years resulting in a big debts and debt traps.
The 40 day lockdown has incurred a loss of about Rs. 1800 crore to the NHAI due to suspension of toll collection. The Ministry of Road Transportation and Highways has suspended tolling on all National [Read More]
This news explains in detail about the recent Supreme Court Judgment which lifted the ban on virtual currencies. This news is related to the topic of Government policies of GS 2 and Indian Economy of [Read More]
The National Bank for Agriculture and Rural Development (NABARD) has launched the ‘Structured Finance and Partial Guarantee Program for NBFC-MFIs,‘ a dedicated debt and credit guarantee offering, to ensure unhindered credit flow to the last [Read More]