Volume : VI, Issue : VII, July - 2017

Public Debt Management A Theoretical Analysis

Dr. V. K. Gautam

Abstract :

 Public debt in simple words means debt. incurred by the government in mobilisng savings of the people in the form of loans, which are to be repaid at a future date with interest. Public debt can be both internal as well as external. According to Richard Musgrave and Peggy Musgrave,¹ ‘‘public borrowing involves a withdrawal made in return for the government’s promise to repay at a future date and to pay interest at the interim.”

The concept of public borrowing or debt as such was condemned earlier by classical economists like Adam Smith and Hume who considered that it would compel the government to tax the public and hence lead to disequiliium in the economic system. Later the Great Depression of 1929 ought about a marked change in economic thinking of which J.M. Keynes was the pioneer. It was felt that public debt. would raise the national income, lead to effective demand in the economy, increase the employment and output. Hence it was after world war II that public debt came to occupy a prominent place in the budgets of the governments of the different countries.

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Article: Download PDF   DOI : 10.36106/ijsr  

Cite This Article:

Dr. V. K. Gautam, Public Debt Management A Theoretical Analysis, INTERNATIONAL JOURNAL OF SCIENTIFIC RESEARCH : VOLUME-6 | ISSUE-7 | JULY-2017

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