Question

[3]
2
क्या सार्वजनिक ऋण बोझ बनता है? व्याख्या कीजिए।
Does public debt impose a burden? Explain.​

Answer 1

Answer:

Borrowing by the government leads to public debt. Total outstanding loans by the government go by the name of government debt for "public debt". Public debt is the debt that the government owes to its subjects or the nationals of other countries. In other words, public debt refers to the loans raised by the government from within the country or from outside the country.

Payment of interest on external depth and repayment of these loans may cause greater hardship to the economy because the payment has to be made in foreign currency, which results in transferring a part of its income and wealth abroad.  

Unproductive deb_ts do not add to the productive capacity of the country. Consequently, these deb_ts constitute a burden upon the government, and repaying these deb_ts becomes difficult.