Capital levy & Deficit financing - Public Expenditure, Public finance Video Lecture | Public Finance - B Com

in this video we will be studying about
the fiscal deficit now what was the
students insane
we did today when you deficit will not
be previous video your every new deficit
was a revenue expenditure - you have a
new distance now what the fiscal deficit
is it is a situation when your total
expenditure is greater than you are
totally which means your Obelix factor
includes then you plunge capital
expenditures and your total revenue
includes your name and you plus capital
reserves or you can also call them as
the total reserves so your prosperity
said f ve that is respondent is equal to
total or budget expenditure
- total or budget whistles here total
includes an Iranian capital expenditures
so this good and hence it is in fact
equal to prove the borrowings and other
liabilities of the government now what
are the implication is often the skill
deficit see if yet the fiscal deficit is
more which means that expansion so what
happens is create a fiscal deficit
implies create a bar of this body
government
I am the fiscal deficit implies creator
borrowings by dinar
right so what are the implications of
fertility set number one and for
inflation see government already
includes borrowing from the will of fire
which helps deficit financing unwitting
deficit requirement of the garment by
well fitting both notes so if the
garment - we want from the rj whatever
you do they will give the government
loan but printing one more so this is
dangerous because it will increase the
flow of money in the market that is
supply of money increases in the market
and demand is less if supply as kids and
demand your price rises so increasing
the journal price level is inflation
that your price and right in the market
so it becomes in case of inflation in
the market form of inflation second we
have us increases foreign dependence the
government if I will not able to get rid
on what government who is foreign bottle
thrown from the next of these world from
other countries or from IMF that is
International Monetary Fund or the World
Bank the government take loans from
outside India that of the rest of the
world sweating increase foreign
dependence a huge financial burden
for future generation see if you are
taking loan and you own alone what will
happen with the future generation come
into picture and they start you know
governing the country what will happened
if you have a huge burden on for the
growth and development then for three
hours multiplies boys which is payment
of interesting police's revenue
expansion of causing ininclusive its
revenue depth the of the circle
sets in very deficits multiplied by C
what do you do you take T loan in order
to satisfy you
so in this way and more and more known
you take more and more us to have to pay
and in order to pay that interest if we
do not have money
take another door another bottom so
there's keeps on increasing here revenue
that is it keeps on increasing your
borrowings so ultimately it affects in
the multiplication of borrowing is that
you're born with borrowings are
multiplied so this is the impact of
fiscal deficit roughly economy I hope
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