Fiscal Deficit Explained: Impact, Causes & Solutions for UPSC & Competitive Exams

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Explore the concept of fiscal deficit in this detailed video designed for UPSC aspirants and competitive exam enthusiasts. Understand the technical definition, its impact on the economy, and the relationship between government borrowing, public debt, and interest rates. Discover how fiscal deficit leads to inflation, the crowding out effect, and reduces the government's ability to tackle economic shocks. Learn about the Fiscal Responsibility and Budget Management Act (FRBM) and its objectives. This video also covers fiscal reforms, including strategies to reduce expenditure, increase revenue, and achieve fiscal stability. Perfect for those preparing for economics sections in exams, this video provides a clear and concise explanation of fiscal deficit and its broader implications.

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