What are the three ways to finance deficit spending?

The three ways to finance the deficit spending are:

1. Increasing the tax revenues: The government can raise and broaden the tax structure to increase government revenues.

2. Borrowing from the domestic as well as external sources: Domestic sources include commercial and public banks. External sources include foreign banks, IMF, and world bank.

3. Deficit financing or printing of new currency notes. This new currency is published by the central bank against government securities.