Want this question answered?
The government was under pressure to raise more taxes due to the budget deficit they had.
One way that the government cannot prevent a budget deficit is by selling stocks.
Public education is funded by the state, and when the state needs to save money or balance a state budget deficit, they must make cuts from publicly funded arenas to make ends meet, including education.
Aggregate Demand = Consumption (C) + Investment (I) + Government Spending (G) + Exports (X) - Imports (M) Income = Consumption (C) + Savings (S) + Taxes (T) Aggregate Demand = GDP = Income C + S + T = C + I +G + (X - M) so I=S+(T-G)+(M-X) If T is less than G you will have a budget deficit. Which would make (T-G) negative and decrease investment.
Deficit financing is defined as financing the budgetary deficit through public loans and creation of new money. Deficit financing in India means the expenditure which in excess of current revenue and public borrowing. The government may cover the deficit in the following ways.By running down its accumulated cash reserve from RBI.Issue of new currency by government it self.Borrowing from reserve bank of India and RBI gives the loans by printing more currency notes.
Issue bonds
The government was under pressure to raise more taxes due to the budget deficit they had.
One way that the government cannot prevent a budget deficit is by selling stocks.
the government should increase personal income tax and publish government bond^^
Deficit financing
Deficit financing is defined as financing the budgetary deficit through public loans and creation of new money. Deficit financing in India means the expenditure which in excess of current revenue and public borrowing. The government may cover the deficit in the following ways.By running down its accumulated cash reserve from RBI.Issue of new currency by government it self.Borrowing from reserve bank of India and RBI gives the loans by printing more currency notes.
The government was running a surplus.
tax cuts, defense hikes, and that congress and the white house were unwilling to make serious budget cuts.
The government could invest now because of the budget surplus that they had.
Public education is funded by the state, and when the state needs to save money or balance a state budget deficit, they must make cuts from publicly funded arenas to make ends meet, including education.
Aggregate Demand = Consumption (C) + Investment (I) + Government Spending (G) + Exports (X) - Imports (M) Income = Consumption (C) + Savings (S) + Taxes (T) Aggregate Demand = GDP = Income C + S + T = C + I +G + (X - M) so I=S+(T-G)+(M-X) If T is less than G you will have a budget deficit. Which would make (T-G) negative and decrease investment.
Deficit financing is defined as financing the budgetary deficit through public loans and creation of new money. Deficit financing in India means the expenditure which in excess of current revenue and public borrowing. The government may cover the deficit in the following ways.By running down its accumulated cash reserve from RBI.Issue of new currency by government it self.Borrowing from reserve bank of India and RBI gives the loans by printing more currency notes.