Loading...
UPSC 2013: In India, deficit financing is used for raising resources for
(a)economic development
(b)redemption of public debt
(c)adjusting the balance of payments
(d)reducing the foreign debt
Attempt This Question
Not attemptedCorrect Answer: (a) economic development
India has historically resorted to deficit financing—i.e., monetising part of the fiscal deficit—to obtain additional resources for Plan and other developmental expenditure; it is not aimed at paying off debt or external-sector adjustment. Thus option (a) is correct while the other purposes listed do not accord with Indian practice. ([forumias.com](https://forumias.com/blog/download-upsc-prelim-2013-gs-paper-1-question-paper/))
Related Current Affairs
Related UPSC Questions
More from Fiscal Policy & Budget
2011easy
Which one of the following statements appropriately describes the “fiscal stimulus”?
2010easy
Which one of the following is responsible for the preparation and presentation of Union Budget to the Parliament?
2013moderate
Which one of the following is likely to be the most inflationary in its effect?
Frequently Asked Questions
What is the correct answer to this UPSC 2013 Indian Economy question?▼
The correct answer is option (a): economic development. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Fiscal Policy & Budget question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2013, GS Paper 1, as Question 44. It falls under Indian Economy > Fiscal Policy & Budget.
What is the difficulty level of this UPSC question?▼
This question is rated "easy". It tests basic recall and most well-prepared aspirants should answer it correctly.
How many UPSC Prelims questions have been asked from Fiscal Policy & Budget?▼
UPSC has asked 44 questions from Fiscal Policy & Budget (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.