Indian Economy
Gross domestic capital formation is defined as

net addition to stock after depreciation
expenditure incurred on physical assets only
flow of expenditure devoted to increased or maintaining of the capital stock
production exceeding demand

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Indian Economy
Deficit financing leads to inflation in general, but it can be checked if

all the expenditure is denoted national debt payment only
All of the listed here
only aggregate demand is increased
government expenditure leads to increase in the aggregate supply in ratio of aggregate demand

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