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With the Help of on Example Explain the Term Productive Debt. - Economics

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Question

With the help of an example explain the term productive debt.

Solution

A debt is called productive if the loan is financed for the projects which bring revenue to the government such as irrigation and power projects. Unproductive public loans are a net burden on the community. The government will have to resort to additional taxation for their servicing and repayment.

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With the Help of on Example Explain the Term Productive Debt. Concept: Concept for Public Debt.
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