What is a "deficit financing"?

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AIncreasing taxes to cover government spending

BSelling government assets to fund public services

CReducing government expenditure to balance the budget

DBorrowing money to meet the fiscal deficit

Answer:

Deficit financing is the process of raising funds to meet the government's spending needs when its revenue is insufficient, typically by borrowing from the market or from the central bank.

Related Questions:

Analyze the role of Gulf migration and remittances in Kerala's socio-economic development and identify the true statements.

Gulf migration and foreign remittances have played a significant role in the socio-economic development of Kerala.
The volume of remittances to Kerala became substantial only after the turn of the millennium.
Remittances have been crucial in making Kerala an affluent state and enabling redistribution among various sections of society.
The expenditure pattern of migrants is primarily focused on long-term productive investments like setting up large industries.