The following points highlight the nine main causes of rural indebtedness. The causes are: 1. Better Position to Borrow 2. Farmer's Increased Credit 3. Un-Remunerative Farming 4. Heaviness of Land Revenue 5. Increased Standard of Living 6. Conditions Necessary to Induce the Money Lenders to Lend 7. Improvident Expenditure 8. Ancestral Debts 9. Questionable Practices of Money-Lenders. Cause # 1. [...]
Burden of Public Debt and Its Measurement! Burden of Internal Debt: It is said that an internal debt has no direct money burden since the interest payment on debt and the imposition of taxation to pay interest to the lenders is simply a transfer of purchasing power from one to another. This means that in case of internal debt, money [...]
Public Debt: Meaning, Classification and Method of Redemption! Meaning of Public Debt: Modern governments need to borrow from different sources when current revenue falls short of public expenditures. Thus, public debt refers to loans incurred by the government to finance its activities when other sources of public income fail to meet the requirements. In this wider sense, the proceeds of [...]