Public Debt or Borrowings: Concept, Need, Sources & Types

Introduction

The study of public debt is an integral part of the study of public finance, apart from the study of public revenues and expenditures. Since the Great Depression of 1930, public debt has assumed greater significance in the process of economic growth.

Keynes saw public debt as an instrument of mobilizing saving, investment and improvement in the standard of living.

Public debt refers to the borrowings of the government from internal and external sources. A government borrows money when its revenue falls short of its expenditures.

Generally, the government raises debt through the issue of bonds or treasury bills with a promise to pay interest to the bondholders at specified intervals.

Read More About Public Debt or Public Borrowings

1. Concept of Public Debt or Public Borrowings
2. Need for Public Debt or Public Borrowing
3. Sources of Public Debt
4. Classification of Public Debt

Read More in: Theory of Public Finance

  1. Public Finance: Meaning, Nature & Scope
  2. Role of Government in Economy
  3. Role of Government in Mixed Economy: Public & Private Sector
  4. Role of Government under Cooperation and Competition
  5. Role of Government in Economic Development and Planning
  6. Concept of Public Goods, Private Goods, and Merit Goods
  7. Concept of Market Failure and Functions of Government
  8. Market Failure and Functions of Government: Decreasing Costs
  9. Market Failure and Functions of Government: Externalities
  10. Market Failure and Functions of Government: Public Goods
  11. Future Market: Meaning, Role & Uncertainty
  12. Concept of Information Asymmetry
  13. Theory of Second Best: Concept & Explanation
  14. Problem of Allocation of Resources: Public & Private Mechanisms
  15. Preferences: Meaning, Types & Problems of Preference Revelation
  16. Preference Aggregation & Its Mechanism
  17. Voting Systems, Direct Democracy, Representative Democracy, Leviathan Hypothesis & Arrow’s Impossibility Theorem
  18. Economic Theory of Democracy: Concept & Explanation
  19. Politico Eco Bureaucracy: Concept & Explanation
  20. Rent-Seeking and Directly Unproductive Profit-Seeking Activities
  21. Rationale for Public Goods: Concept & Explanation
  22. Benefit Theory or Voluntary Exchange Theory
  23. Lindahl Model: Concept, Equilibrium & Limitations
  24. Bowen Model: Concept, Advantages & Limitations
  25. Samuelson’s Model of Public Expenditure
  26. Musgrave’s Model of Public Expenditures
  27. Demand Revealing Schemes for Public Goods
  28. Vickery-Clarke-Groves Mechanism
  29. Groves-Ledyard Mechanism
  30. Tiebout Model: Concept, Assumptions Equilibrium & Simple Tiebout Model
  31. Theory of Club Goods
  32. Keynesian Principles of Stabilization Policy
  33. Difference Between Keynesian Economic Thought and Others
  34. Role of Expectations and Uncertainty in Formulating Stabilization Policy
  35. Intertemporal Markets Efficiency & Failure
  36. Liquidity Preference Theory
  37. Diamond-Dybvig Banking Model
  38. Preference Shocks, Adverse Selection & Central Bank
  39. Equilibrium Deposit Contract
  40. Social Goods and Its Effect on Stabilization Policy
  41. Effect of Infrastructural Facilities on Stabilization Policy
  42. Effect of Distributional Inequality on Stabilization Policy
  43. Effect of Regional Imbalances on Stabilization Policy
  44. Wagner’s Law of Increasing State Activities: Explanation, Graph & Criticism
  45. Peacock-Wiseman Hypothesis: Explanation, Graph & Criticism
  46. Public Expenditure: Concept, Objectives, & Public vs Private Expenditure
  47. Pure Theory of Public Expenditure
  48. Structure & Growth of Public Expenditure in India
  49. Trends, Lessons & Priorities in Public Expenditure in India
  50. Social Cost-Benefit Analysis: Project Evaluation, Estimation of Costs & Discount Rate
  51. Performance Based Budgeting and Zero Based Budgeting
  52. Theories of Tax Incidence: Concentration Theory, Diffusion Theory & Modern Theory
  53. Tax System and Its Principles
  54. Equity Principle and Efficiency Principle of Taxation: Meaning, Explanation & Examples
  55. Ability to Pay and Benefits Received Principle of Taxation
  56. Theory of Optimal Taxation: Excess Burden & Distortions of Taxation
  57. Deadweight Loss of Taxation: Causes, Measurement & Example
  58. Concept of Equity & Efficiency in Economics
  59. Trade-Off Between Equity and Efficiency: Meaning & Example
  60. Theory of Measurement of Dead Weight Loss
  61. Double Taxation: Meaning, Desirability, Forms & Solution
  62. Solution to Problem of Double Taxation: Intra-Country & International
  63. Double Taxation Avoidance Agreement (DTAA) and Indian Policy
  64. Classical View on Public Debt
  65. Compensatory Aspect of Public Debt Policy
  66. Public Debt or Borrowings: Concept, Need, Sources & Types
  67. Concept of Public Debt or Public Borrowings
  68. Need for Public Debt or Public Borrowing
  69. Sources of Public Debt
  70. Classification of Public Debt
  71. Burden of Public Debt: Meaning, Types & Explanation
  72. Debt Through Created Money or Deficit Financing
  73. Public Debt (Public Borrowings) and Inflation (Price Level)
  74. Crowding Out of Private Investment and Activity
  75. Principle of Public Debt Management and Debt Repayment

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