myz-vgb.ru A Business Encyclopedia

Monetised Deficit

Definition: The Monetised Deficit is the extent to which the RBI helps the central government in its borrowing programme. In other words, monetised deficit means the increase in the net RBI credit to the central government, such that the monetary needs of the government could be met easily.

The monetized deficit results in the increase in the net holdings of treasury bills by the RBI and also the RBI contribution towards the government’s market borrowings increases. With the issue of more money to the government, the money supply in the economy increases, as a result of which the inflationary pressure prevails. Hence, we can say that monetised deficits are the part of a fiscal deficit that leads to the inflation in the economy.

Thus, it can be concluded that monetised deficit occurs when the government takes a monetary support from the RBI to finance its debt obligations and try to reduce its unnecessary expenditures.

Leave a Reply

Your email address will not be published. Required fields are marked *

Shares

Related pages


bank debenture definitionmarket speculatorempowerment marketing definitionrensis likert theorymonopoly economics definitionwhat are cardinal traitstrainings meaninghenry fayol 14 principlesconvenience sampling meaningan example of an oligopolylinear programing problemsintersecting lines definedebtors ratiodefinition whistleblowingdebtors ratio formulawhat is ansoffansoff matrix modellbo meaningvertical channel conflict examplealderfer motivation theoryfull form of neft in banking sectorsituational variables in leadershipcarrot definitionalderfer ergid ego and superego examplessampling distribution of means definitionwhat is the definition of oligopolyselective listening definitionqualitative sales forecastingdiscounting and rediscounting of billsjudgemental meancpm critical pathdefinition of demand scheduleassumptions of capm explainedmarginal costing in management accountingwhats a balloon paymentdivestiture company examplesoperant theory of motivationpath goal leadershipconsumer affluenceclassical conditioning meaningmarketing auditsmeaning of slrgross profit margin ratio calculatorgreenmail paymenttowne definitiondefine industrialistprofitable indexcash budget purposetwo way asymmetrical communicationimportance of hire purchasedelphi technique processcrr in bankwhat are cardinal traitsneft payment timingsmotivation process theorymeaning of stock splitexposer meaningwhat is sbi kiosk bankingwhat is fmcg company meanscaptive defprofit to sales ratio formulawhat is virtue theory definitionfrank knight uncertaintydefine fixed asset turnoverbusiness jargons listdefine revenue deficitwhat is the meaning of ulteriorcardinal measure of utilityunstructured questionnairesmeaning of autocraticfeatures of oligopoly marketmethods of performance appraisal in hrmmultiphase sampling examplewhat does lpp meandefinition of neftcharacteristics of lppwhat is poaching mean