Negative effects/disadvantages/demerits of public borrowing
- It encourages dependency / laziness.
- Undermines capital formation due to debt repayment
- It is inflationary i.e. a case with external borrowing
- Worsens the Balance of Payment (B.0.P) position
- Shifts the burden of debt repayment to the future generation who may not have benefited from the debt but pay it.
- Worsens income inequality
- Leads to manipulation of the country by foreigners
- Leads to misallocation of resources / extravagance /corruption
- Citizens are being burdened by taxes to raise revenue for debt repayment.
- External debt payment limits import capacity
- Undermines private investment due to public borrowing outcompeting private investment in both the money and capital markets
- Nationals are denied essential goods due to debt repayment.
CATEGORIES Economics
TAGS Dr. Bbosa Science
Your writing style is very engaging. Home Improvement
Your content is a real gem. Transfer Latest
Take advantage of trusted guidance with MBBS Admission Through Management/Nri Quota in Punjab.
Get detailed cutoff trends for MBBS Cutoff Of Government Medical Colleges in Maharashtra.
Win exciting rewards and enjoy seamless gaming on Raja Luck.
Learn the best methods to Earn backlinks and grow your traffic organically.
Maximize your making potential with special deals linked to the Diu Win Invite Code.
Boost your profits by inviting buddies utilizing the Goa Games Invite Code.
Reduce capital investment with dependable and cost-efficient Server Rental in Gurgaon.
Experience an amazing and satisfying gaming platform with bdg win.
Get access to a range of premium titles on 55 club games.
The bdg win app offers a smooth user interface and an appealing video gaming experience.
Enhance your home’s storage with Home Organization Products that combine performance with style.
The regional insights in this post are invaluable. I ‘d add that Escort Service In Nainital offers educated buddies acquainted with hidden gems.
I can’t stop sharing my Joshital Love with my friends and household.