Deficit financing implies that the government borrows money predominantly from the:
- ARevenue Department
- BWorld Bank
- CReserve Bank of India
- DState Bank of India
Solution & Step-by-step Explanation
Deficit financing occurs when the government spends more than its structural revenues. To bridge this fiscal gap, the government can borrow money from the country's central bank, the Reserve Bank of India (RBI), which prints new currency or creates credit against government securities.