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. Deficit financing means that the government borrows money from
(1) The local bodies
(2) The Reserve Bank
(3) The neighbouring countries
(4) All the above
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Answer Posted / jyothsna surapureddy
deficit financing also known as budget financing is the
financing process when there is deficit to sustain its
budget i.e., when expenditure is more than revenue. the
government utilises various means to finance the deficit.
those include.., external aids, external borrowing,
internal borrowing, printing currency...
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