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Reasons why Government borrow.
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[QUOTE="Caramelle, post: 219042, member: 150"] Governments may borrow money to fund ambitious infrastructure projects. While spending should ideally be covered by taxes and savings, the government may consider construction projects to be of paramount importance to the progress of the country and may thus risk paying interest and bear the burden of debt to secure funds for infrastructure. Infrastructure projects stimulate the economy and generate jobs for many people and thus help lower unemployment and poverty rates. [JUSTIFY]Governments may also borrow money to fund their response to a national health emergency like the coronavirus pandemic. Many countries were caught unprepared by the pandemic and had to resort to foreign and domestic loans in order to support their health and medical programs as well as provide financial assistance to the marginalized sectors in times of lockdowns. [/JUSTIFY] [/QUOTE]
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Reasons why Government borrow.
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