{"id":91088,"date":"2025-06-01T10:45:51","date_gmt":"2025-06-01T10:45:51","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=91088"},"modified":"2025-06-01T10:45:51","modified_gmt":"2025-06-01T10:45:51","slug":"in-india-deficit-financing-is-used-for-raising-resources-for","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/in-india-deficit-financing-is-used-for-raising-resources-for\/","title":{"rendered":"In India, deficit financing is used for raising resources for"},"content":{"rendered":"

In India, deficit financing is used for raising resources for<\/p>\n

[amp_mcq option1=”economic development” option2=”redemption of public debt” option3=”adjusting the balance of payments” option4=”reducing the foreign debt” correct=”option1″]<\/p>\n

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\n
This question was previously asked in<\/div>\n
UPSC IAS – 2013<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nIn India, deficit financing is primarily used for raising resources for economic development.
\n<\/section>\n
\nDeficit financing refers to the practice where the government spends more than it receives in revenue, making up the difference by borrowing (from domestic or foreign sources) or, historically, by printing money (borrowing from the central bank). In developing economies like India, where tax revenues are often insufficient to fund large-scale infrastructure and development projects, deficit financing has been a common tool to mobilise resources needed for planned expenditure aimed at economic growth and development.
\n<\/section>\n
\nWhile deficit financing can lead to inflation if not managed properly, it has been used as a means to stimulate investment and growth, particularly in the early stages of development planning. Options B, C, and D are not the primary reasons for employing deficit financing; in fact, deficit financing can sometimes complicate balance of payments (if funded externally) or increase public\/foreign debt.
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

In India, deficit financing is used for raising resources for [amp_mcq option1=”economic development” option2=”redemption of public debt” option3=”adjusting the balance of payments” option4=”reducing the foreign debt” correct=”option1″] This question was previously asked in UPSC IAS – 2013 Download PDFAttempt Online In India, deficit financing is primarily used for raising resources for economic development. Deficit financing … <\/p>\n

Detailed SolutionIn India, deficit financing is used for raising resources for<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1092],"tags":[1467,1120,1196],"class_list":["post-91088","post","type-post","status-publish","format-standard","hentry","category-upsc-ias","tag-1467","tag-economic-development","tag-fiscal-policy-revenue","no-featured-image-padding"],"yoast_head":"\nIn India, deficit financing is used for raising resources for<\/title>\n<meta name=\"description\" content=\"In India, deficit financing is primarily used for raising resources for economic development. Deficit financing refers to the practice where the government spends more than it receives in revenue, making up the difference by borrowing (from domestic or foreign sources) or, historically, by printing money (borrowing from the central bank). In developing economies like India, where tax revenues are often insufficient to fund large-scale infrastructure and development projects, deficit financing has been a common tool to mobilise resources needed for planned expenditure aimed at economic growth and development.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/in-india-deficit-financing-is-used-for-raising-resources-for\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"In India, deficit financing is used for raising resources for\" \/>\n<meta property=\"og:description\" content=\"In India, deficit financing is primarily used for raising resources for economic development. Deficit financing refers to the practice where the government spends more than it receives in revenue, making up the difference by borrowing (from domestic or foreign sources) or, historically, by printing money (borrowing from the central bank). In developing economies like India, where tax revenues are often insufficient to fund large-scale infrastructure and development projects, deficit financing has been a common tool to mobilise resources needed for planned expenditure aimed at economic growth and development.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/in-india-deficit-financing-is-used-for-raising-resources-for\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T10:45:51+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"In India, deficit financing is used for raising resources for","description":"In India, deficit financing is primarily used for raising resources for economic development. 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