The first clear formulation of a theory of public expenditure which can give a positive interpretation was presented by poter krut Wicksell and Esik Lindahl. In this formulation, individuals bargain over the level of public goods supply, simultaneously with the distribution of the cost between them. The bargaining equilibrium is Pareto optimal. In addition, each individual pays a price in [...]
In this article we will discuss about:- 1. Concepts of Deficit Financing in India 2. Role of Deficit Financing 3. Safe Limits. Concepts of Deficit Financing in India: The issue of definition and measurement of deficit financing is sometimes confusing. We are familiar with different concepts of deficit, and in India, the concepts of Revenue Deficit, Budgetary Deficit, Monetized Deficit, [...]
To study the effects of public debt we have to first draw a distinction between internal debt and external debt. When a government borrows money from its own citizens by selling bonds or long-term credit instruments a internal debt is created. It is owed by a nation to its own citizens. So, it may apparently seem that an internal debt [...]