GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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debt owed by a government
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when a country is spending more on foreign trade than it is earning
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amount charged by a lender to a borrower for the use of their money
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rate at which the level of prices for goods and services are rising and purchasing is falling
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exchange of one currency for another; conversion of one currency into another
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Detailed explanation-1: -Public debt meaning: It is the total amount of money that is owed to the public by the government to meet the development funds. In public finance, it is also known as public interest, government debt, national debt and sovereign debt. The public debt can also be owed to lenders within the country.
Detailed explanation-2: -Public debt, sometimes also referred to as government debt, represents the total outstanding debt (bonds and other securities) of a country’s central government. It is often expressed as a ratio of Gross Domestic Product (GDP).
Detailed explanation-3: -In a narrower and more pragmatic sense (since ownership of entities is getting diversified and changing), public debt refers to debt incurred by Centre, State and local Governments such as Municipalities. Often, when we talk of public debt-GDP ratio or fiscal deficit, we refer only to the debt of Central Government.
Detailed explanation-4: -Public debt is the total amount, including total liabilities, borrowed by the government to meet its development budget. It has to be paid from the Consolidated Fund of India.
Detailed explanation-5: -Note: The Central Government debt/liabilities, including external debt at current exchange rate, EBRs and after adjusting cash balance, is estimated at 155.77 lakh crore and ₹ 172.50 lakh crore as on 31st March, 2023 & 31st March, 2024, respectively.