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प्रश्न
What do you mean by public debt?
What is public debt?
उत्तर
Public debt refers to the borrowing done by the government to meet its expenditures when traditional sources of revenue, like taxes, are insufficient. Governments borrow from individuals, institutions, and sometimes from foreign sources. In developing or underdeveloped countries, the amount of borrowing is often large due to the need to fund development projects. This can lead to a heavy debt burden, and if borrowing becomes excessive, it can result in a debt trap where the country struggles to repay its debts.
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संबंधित प्रश्न
Government borrows from its citizens, banks, central bank etc. is known as ______.
Assertion (A): Raising debt is the most common activity of any government.
Reasoning (R): Government expenditure generally exceeds government revenue.
Identify & explain the concept from the given illustration
Reserve Bank of India helps to raise loans for both the Central and State Governments by selling government bonds, securities etc.
The primary purpose of deficit financing is ______.
Mention any three methods of redemption of public debt.
Explain the methods of debt redemption.
Distinguish between internal debt and external debt.
- Assertion (A): Debt raised by the government from borrowings from the International Monetary Fund is an external debt.
- Reasoning (R): The Government of India may take loans from International Monetary Fund for Mumbai Metro Train.
Give an economic term:
Debt is raised by the government from borrowings from its citizens.
