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Why do government borrow money
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[QUOTE="Axis, post: 268026, member: 66672"] in order to finance budget deficit that is when government spend more than the revenue a government has in a given period of time or you can say when government expenditure for a particular period of time surpasses the estimated revenue the governor's so to avoid this type of situation government now borrow money or collect loans and also government collect loans or borrow money in order to finance project that requires huge amount of capital such as the construction of refineries,railways seaports and so on. these projects requires huge amount of capital and so government can loan money or borrow money in order to finance such projects. another reason in which government collect loans or borrow money is to supply and ensure that there is employment in the country that is when the loans are being borrowed the government use it to grow or improving industrialisation in the country or a nation this will provide and generate employment opportunities for the masses at large. when there is existence of emergencies such as wars farming hurricane economic stability the government now collect loans in order to meet the cost of these emergencies. And also government can find it challenging to pay their workers and so in turn they borrow money or collect loan [/QUOTE]
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Why do government borrow money
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