Mention any three roles played by public debt in a nation.
Asked by Topperlearning User
24th April 2015,
7:39 AM
Answered by Expert
Answer:
Role of public debt in a nation:
- To meet the budgetary deficit: Public debt is raised to bridge the gap between public expenditure and the tax revenues of the government. In case the government revenue from taxes and other sources is insufficient to meet the public expenditure, then the government borrows money.
- To finance the development plans: The government has to finance developmental projects. In India, the government has to play a significant role for the development plans of the economy. Hence, the government borrows from the public to maintain the required funds.
- To build infrastructure: In a developing country like India, the basic infrastructure facilities are very important for the process of development. These investment plans are less attractive to private companies as their returns are minimal. Hence, the government has to borrow money to invest in these projects.
Answered by Expert
24th April 2015,
9:39 AM
Rate this answer
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
You have rated this answer /10
Your answer has been posted successfully!
RELATED STUDY RESOURCES :
ICSE Class-10 QUESTION ANSWERS
- Biology Question Answers for ICSE Class 10
- Chemistry Question Answers for ICSE Class 10
- Economics Question Answers for ICSE Class 10
- Economics Applications Question Answers for ICSE Class 10
- English Question Answers for ICSE Class 10
- Hindi Question Answers for ICSE Class 10
- Mathematics Question Answers for ICSE Class 10
- Physics Question Answers for ICSE Class 10
- Science Question Answers for ICSE Class 10
- Social Studies Question Answers for ICSE Class 10
Browse free questions and answers by Chapters
Trending Tags
Latest Questions
Junior III English
Asked by meena tolani
19th February 2019,
9:05 PM
ICSE X History and Civics
Asked by cbasavaraj089
19th February 2019,
8:58 PM
