Economics · Public Finance and Budget
Under what condition does deficit financing (Heenarth Prabandhan) primarily occur in a country's budget?
- 1When total estimated revenue exceeds total planned expenditure
- 2When the government decides to phase out old currency notes
- 3When total estimated expenditure exceeds total revenue receipts✓
- 4When foreign exchange reserves drop to a critical level
Correct answer
When total estimated expenditure exceeds total revenue receipts
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