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AN Abstract On Public Debt

Public debt, also known as government debt, refers to money borrowed by governments through bonds or loans. It is a method used by governments to finance operations when tax revenue is not enough to cover expenditures. Public debt includes debt owed by central, state, and local governments. It is classified into internal debt, which is owed to lenders within the country like banks and financial institutions, and external debt, which is owed to foreign lenders. Over time, the public debt of India's central and state governments has increased as a means to fund development and non-development activities when tax revenues could not cover spending.

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64 views2 pages

AN Abstract On Public Debt

Public debt, also known as government debt, refers to money borrowed by governments through bonds or loans. It is a method used by governments to finance operations when tax revenue is not enough to cover expenditures. Public debt includes debt owed by central, state, and local governments. It is classified into internal debt, which is owed to lenders within the country like banks and financial institutions, and external debt, which is owed to foreign lenders. Over time, the public debt of India's central and state governments has increased as a means to fund development and non-development activities when tax revenues could not cover spending.

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praveen
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ABSTRACT

Public Debt is also known as Government Debt (or) National Debt (or)
sovereign debt and it is owned by the Central Government. But in Federal states,
these Public Debts may also be referred by the state or provincial or local
Government. Public debt is one system/method for financing government
operations, but it is not only one method for the financing government operations.
Governments can also create money to monetize their debts, in this manner
uprooting the need to pay interest.

Public debt refers to government debt. It refers to Government borrowings


from individuals, financial institutions, organizations and foreign countries. If
revenue collected through taxes and other sources is not adequate to cover
expenditure, the government may resort to borrowings. Thus public debt is one of
the instruments to cover deficits in budget.
Over the years, the public debt of Central Government and that of State
Governments has increased during the planning period. In short, public debt refers
to obligations of governments, particularly those evidenced by securities, to pay
sums to the holders at some future date. Borrowed funds are utilized for
development and non-development activities.

These are classified into two kinds. They are

1. Internal debt
2. External debt

Internal debt or domestic debt is the part of the total government debt in a
country that is owed to lenders within the country. Internal debt's complement is
external debt. Commercial banks, other financial institutions etc. constitute the
sources of funds for the internal debts.

External debt, This is a list of countries by external debt, the total public and
private debt owed to nonresidents repayable in internationally accepted currencies,
goods, or services, where the public debt is the money or credit owed by any level
of government, from central to local, and the private debt the money or credit owed
by private households or private corporations based in the country under
consideration

Subject: Economics

Topic: public debts in India

Submitted by,

NAME: B. PRAVEEN

ROLL. NO: 2015020

SEMESTER: 2nd semester

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