Budget Deficits Impact Economy: India's Current Account Deficit Revealed
The article examines how government spending affects the balance of trade in India from 1990 to 2015. It uses different economic models and statistical methods to show that there is a connection between budget deficits and trade deficits in the country. The results suggest that factors like inflation, exchange rates, and interest rates can impact both deficits. The study concludes that changes in government spending can influence the trade balance in India.