Public Debt

For public expenditure government needs public debt. The public debt borrowed by government is known as public devt. . Public debt is used for implement development plans, expand public sector, control economic depression, curb inflation, expansion of education and health services, solve the problem of war and crises, reduce the burden of taxation and fulfil deficit budget. The sources of public debt is classified into two parts . The are internal and external debt. Internal debt includes the debt from individuals, from financial institution, from commercial banks, from central bank. On the other hand, external sources includes the debt from foreign government and debt from international financial agencies.