Question

Distinguish between 'Voluntary debt' and 'Compulsory debt'.

Answer 1

Voluntary Debt - It is a debt which is acquired from the people by government on a voluntary basis. In this people willingly subscribe to the government loans.

Compulsory Debt - These are the loans which are forcibly taken from the people by the government. When government exercises its power for loans, they are known as compulsory tax.