Question

explain the reasons for growing public debts​

Answer 1

Answer:

Short-term and Long-term:

Short-term loans are repayable after short interval of time, e.g. Treasury Bills payable after three months, ways and means advances from the Central Bank. They are intended to bridge the gap temporarily between current revenue and current expenditure. It is called floating debt. Long-term loans are payable after a long time covering several years. They are also called funded debt.

Internal and External:

Internal debt is raised from within the country and external debt is owed to foreigners or foreign governments or institutions.