FY policy extension (also known as the fiscal deficit policy) is the policy to increase government spending than revenue sources by:-increase the level of government spending without increasing revenue source; or-reduced revenue from taxes without reducing spending; or-increase the level of government spending at the same time decreasing revenues from taxes.The extended FY policy has the effect of stimulating economic growth, creating more jobs. However, the extended FY policies often lead to the Government having to borrow debt to offset the budget deficit.
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