After reading this article you will learn about deficit financing as a tool of economic development. Deficit financing is an extraordinary fiscal device of development finance in modern times. In developed countries J.M. Keynes, popularized this concept, with a view to fight and control depression which is often accompanied by unemployment. Prof. J.M. Keynes, through the instrument of pump priming, [...]
After reading this article you will learn about:- 1. Concept of Functional Finance 2. Rules of Functional Finance 3. Roles. The Concept of Functional Finance: The chief exponent of functional finance was Prof. Abba P. Lemer who believed that fiscal measures should be judged only by their effects. The way fiscal measures function in an economy is called functional finance. [...]
In modern days budget is recognized as an efficient fiscal instrument in the hands of the Finance Minister for materializing the prime objective of economic growth and development. However the orthodox economists refuse to accept the efficacy of the budget. For them budget was only a financial statement showing the revenue and expenditure of the government. The great depression of [...]