Which is not an implication of fiscal deficit ?

Stabilisation

The correct answer is option (2) : Stabilisation

Stabilisation generally refers to the goal of achieving economic stability through appropriate fiscal and monetary policies, rather than being directly implicated by fiscal deficits themselves. "Stabilization" is a concept related to economic policy and management, but it is not considered an implication of a fiscal deficit.

Fiscal deficits can have various implications, and the options provided represent some of these  implications :

1. Debt trap : A persistent fiscal deficit can lead to a situation where a government accumulates a significant  amount of debt, which, if not managed properly, can lead to a debt trap, making it challenging to meet debt obligations in the future.

3. Inflation : A large and persistent fiscal deficit can contribute to inflationary pressures in the economy. When the government finances its deficit by printing more money or borrowing, it can lead to an increase in the money supply, potentially causing inflation.

4. Foreign dependency : Running a fiscal deficit can sometime lead to an increased reliance on foreign borrowing or assistance to finance government operations, which can create foreign dependency and affect a country's economic sovereignty.