Question

Many a time we read in financial newspapers about Public Debt, Which of the following is/are the components of Public Debt
A. Market loans
B. External loans
C. Outstanding against saving schemes/provident lands

• A. Only (A)
• B. Only (B)
• C. Both (A) and (B)
• D. Only (C)

Answer 1

The correct option is D Only (C)

Public Debt refers to Obligation of Government particularly those evidenced by securities, to pay certain sums to the holders at some future date. In simple words, Public Debt can be defined as the amount of debt taken by government from internal as well as external sources to meet out its deficit. Public debt is the total amount of money that has been borrowed by the government.

The government issues bonds and securities for borrowing money. All liabilities have to be considered when evaluating the government debt, including pension payments to be paid by the government in the future.