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 essay you will learn about deficit financing in India. In a country like India, where resources mobilisation through taxation is limited, and investment requirements for accelerating economic development is large, the method of deficit financing has become inevitable. It is believed that when there is large stock of ideal and unutilised resources, the adoption of deficit financing, [...]
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. [...]