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How does net debt differ from gross debt?

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How does net debt differ from gross debt?

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उत्तर

Sr. No. Gross Debt Net Debt
1. Gross debt is the total outstanding debt of the government. Net debt is gross debt minus the government's financial assets.
2. It includes all internal and external borrowings. It represents the actual debt liability of the government.
3. It does not deduct cash balances or financial assets. It is calculated after deducting cash balances and financial assets.
4. It is always higher than or equal to net debt. It is lower than gross debt because financial assets are deducted.
5. It shows the total amount borrowed by the government. It shows the government's real debt burden after adjusting for financial assets.
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अध्याय 12: Public Debt - Exercise [पृष्ठ २३२]

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गोयल ब्रदर्स प्रकाशन Economics [English] Class 10 ICSE
अध्याय 12 Public Debt
Exercise | Q 14. | पृष्ठ २३२
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