Indian Economy
Fiscal deficit in the Union Budget means

net increase in Union Governments borrowings from the Reserve Bank of India
the sum of budgetary deficit and net increase in internal and external borrowings
the sum of monetized deficit and budgetary deficit
the difference between current expenditure and current revenue

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

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

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