Deficit financing means that the government borrows money from the
- ARevenue Department
- BWorld Bank
- CReserve Bank of India
- DState Bank of India
Solution & Step-by-step Explanation
In India, deficit financing traditionally describes the practice where the government borrows funds from the country's central bank—the Reserve Bank of India—by issuing treasury bills, leading to the creation of new currency to bridge the fiscal gap between government expenditures and receipts.