Post by joita9865 on Oct 25, 2023 3:38:29 GMT -5
Domestic and foreign In the case of domestic debt, the place of incurrence of the obligation or the creditors come from the country to which the debt relates. Foreign debt, on the other hand, refers to debt owed to foreign entities and banks, international organizations, and governments of other countries. Gross and net Gross debt includes the total value of debt. Net debt is the value of gross debt less receivables of public authorities to other entities.
Causes of public debt Why does public debt arise and why is it such a common phenomenon in many philippines photo editor national economies? A constantly occurring budget deficit, i.e. a situation where state expenditure exceeds budget revenues; No restrictions on budget spending or tax increases which results in lower state revenues ; Increased public spending, which occurs especially during economic crises. Examples include: political transformation after 1989, global financial crisis in 2008, outbreak of the pandemic in 2020; Allocating expenditure to, for example, reducing unemployment , stimulating economic growth , mitigating the negative effects of fluctuations in business cycles ; The effect of political decisions.
When the authorities use public money for specific purposes e.g. social spending , transferring costs, taking out further loans from creditors for subsequent years. Effects of public debt What are the consequences of growing public debt? These include: Rising inflation ; Higher interest rates, which affects the increase in repayment installments for borrowers.
Causes of public debt Why does public debt arise and why is it such a common phenomenon in many philippines photo editor national economies? A constantly occurring budget deficit, i.e. a situation where state expenditure exceeds budget revenues; No restrictions on budget spending or tax increases which results in lower state revenues ; Increased public spending, which occurs especially during economic crises. Examples include: political transformation after 1989, global financial crisis in 2008, outbreak of the pandemic in 2020; Allocating expenditure to, for example, reducing unemployment , stimulating economic growth , mitigating the negative effects of fluctuations in business cycles ; The effect of political decisions.
When the authorities use public money for specific purposes e.g. social spending , transferring costs, taking out further loans from creditors for subsequent years. Effects of public debt What are the consequences of growing public debt? These include: Rising inflation ; Higher interest rates, which affects the increase in repayment installments for borrowers.