deficit finance

In pulling back the deficit, Finance Minister Nirmala Sitharaman's budget for the financial year beginning April 1 will also help hold inflation below the top of the central bank's target range, 6%.

"We intend to contain growth in non-priority expenditures to reduce the fiscal deficit," Finance Minister Njuguna Ndung'u told the meeting on budget preparation.

“He’s also made clear that, right now, one of the best things that we can do is deficit finance these investments because that’s what gets the economy moving more quickly. And in the long term, growth helps bring down the debt and deficit levels as well.”

“To avoid doing what we need to do now to address the pandemic and the economic damage that it is causing would likely leave us in a worse place ... than taking the steps that are necessary and doing that through deficit finance.”

“Economic research confirms that with conditions like the crisis today, especially with such low interest rates, taking immediate action — even with deficit finance — is going to help the economy, long-term and short-term,” Mr. Biden said at a news conference on Jan. 8, highlighting that quick action would “reduce scarring in the work force.”