Methods (ways) of Deficit financing (Methods of financing a Deficit budget)

Methods (ways) of Deficit financing (Methods of financing a Deficit budget)

  1. Borrowing internally from the public by selling bonds and treasury bills.
  2. Borrowing from the central
  3. Use of the gold reserves in the central bank to finance the deficit
  4. Printing of more money by the central
  5. Borrowing externally from international financial institutions like IMF and World
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