State Governments in India finance their Gross fiscal deficit by I. Loans from the Central Government.…
States borrow domestically from Centre and markets,I,II. They do not directly undertake sovereign external borrowing as Centre does;on-lending external assistance through…
Choose your answer
State Governments in India finance their Gross fiscal deficit by
I. Loans from the Central Government.
II. Market Borrowings.
III. External Borrowings.
Answer and explanation
Correct answer A
States borrow domestically from Centre and markets,I,II. They do not directly undertake sovereign external borrowing as Centre does;on-lending external assistance through Centre differs. Either-only codes omit a legitimate source.
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UGC NET Economics