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    ISAS Insights

    Detailed perspectives on developments in South Asia​​

    13 : TRADE-OFF BETWEEN GOVT DEFICIT AND EXPENDITURE ON SOCIAL INFRASTRUCTURE

    Dr S. Narayan, Visiting Senior Research Fellow and Head of Research at the ISAS

    23 January 2006

    There is no agreement among economists either on analytical grounds or on the basis of empirical results whether financing government expenditure by incurring a fiscal deficit is good, bad, or neutral in terms of its real effects, particularly on investment and growth.