Question

You are Union Minister for Finance. You want to revive the GDP growth in year 2021....

You are Union Minister for Finance. You want to revive the GDP growth in year 2021. You can borrow by issuing any amount of bonds. How much would you borrow and spend on what? Study and explain in 150 words.

Homework Answers

Answer #1

As Union Minister of Finance,

We will borrow around 10% of current GDP to invest. As Government spending works in multiplier and multiply itself manyfolds. So 10% of GDP amount will multiply itself and helps to revive the GDP.

The amount borrowed is to be spend through a lot of methods, providing loan to different sectors depending on their contribution in the countries GDP.

Also it is to be speded on people living below poverty line and to provide training to unskilled laobur so that they can become skilled and it helps in more production through out the country which will help in increasing the GDP of the country.

I hope it will help you in the study.

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