Debt What is the solution to the public debt?

Mataracy

Valued Contributor
What is the meaning of debt?
Debt is what somebody borrowed from another person with the aim of paying back either with the exact amount or with interest.

Public debt is simply debt which a country owes to it citizens and to residents ,institutions and government of foreign countries.

The category of public debt that we have are:
(1) We have marketable and Non- marketable debt.

(2) Funded and unfounded Debt

(3) Reproductive and Dead weight debt

(4) We also have internal and external Debt.

What are the General causes of public debt?
(1) Huge and persistent budget deficit: when government expenditure is greater than its revenue.

(2) when the balance of repayment is disequilibrium.

(3) When there is rapid increments in population.

(4) When there is instability of economy in the country.

(5) When there is disasters in the country.

(6)when there is war in a country. etc
These is all what can cause
public debt to be incurred by a country.

Please what can a country do tho bring solution to these?
 

btaliat

VIP Contributor
The solutions to the issue of public debt can be gotten from the causes. The government should try to find the major reason they always borrow money and find solutions to it. For instance, if there is rapid increment in the population, they can try to rationalize this by introducing and sensitizing citizens on the importance of optimum population.
 
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Sammyesx

Verified member
Paying of public debt is a gradual process, most countries that are in debt aquired those loans when they were in one financial crisis or the other, so it will take some time to clear the debt, the country has to develop a stable means of revenue generation to be able to able to clear their debt.
 
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