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Whether fiscal deficit is always bad?

Updated: 12/20/2022
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16y ago

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Fiscal deficit is not always bad.... deficit arises from two parts - capital deficit and revenue deficit. now revenue deficit is obviously bad for economy stating that we are not able to pull money sufficient to meet our revenue and there is no asset creation.

on the other hand if major fiscal deficit is coming from capital deficit its not all that a bad news. after all asset creation is taking place. n such moves are welcome.

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16y ago
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Q: Whether fiscal deficit is always bad?
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