burden of debt

INTEREST charges on DEBT that arise as a result of BORROWING by individuals, firms and governments. In the case of governments, interest charges on the NATIONAL DEBT are paid for out of TAXATION and other receipts. The term ‘burden’ would seem to imply that government borrowing is a ‘bad’ thing insofar as it passes on financial obligations from present (overspending) generations to future generations. The fundamental point to emphasize, however, is that the interest paid on the national debt is a TRANSFER PAYMENT and does not represent a net reduction in the capacity of the economy to provide goods and services, provided that most of this debt is owed to domestic citizens.

INFLATION has the effect of eroding the real burden of debts, which are denominated in NOMINAL VALUES. See PUBLIC SECTOR BORROWING REQUIREMENT.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

References in classic literature ?

"Then you will have parted with the half of your heart and the joy of your life to no purpose, since so mighty of burden of debt will remain behind."

View in context

ISLAMABAD -- The Islamabad Chamber of Commerce and Industry (ICCI) has expressed grave concerns over the 35 percent increase in Pakistan's total debt and liabilities in one year period and called upon the government to formulate a comprehensive strategy to rid the country of this serious issue as the mounting burden of debt and liabilities would plunge the country into severe debt trap and jeopardize the future of our posterity.

Hike of 35% in total debts and liabilities in one year matter of concern: ICCI

The Islamabad Chamber of Commerce and Industry (ICCI) has shown great concerns over the 35 percent increase in Pakistan's total debt and liabilities in one year period and called upon the government to formulate a comprehensive strategy to rid the country of this serious issue as the mounting burden of debt and liabilities would plunge the country into severe debt trap and jeopardize the future of our posterity.

ICCI concerned over 35 percent hike in total debts and liabilities in one year - Press Release issued by Islamabad Chamber of Commerce and Industry

Senator Rand Paul said the deal "deepens Washington's addiction to runaway spending" and shows that neither party cares about the burden of debt left on the next generation.

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Qureshi in his tweet said, 'No nation can prosper under the burden of debt. The only way out is by increasing our tax base and documenting the economy.'

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Both the leaders of PPP and PML-N had created a huge fiscal deficit, revenue shortfall, circular debt, and burden of debt amount of Rs 26000 billion, for the new government of Pakistan Tehreek e Insaf (PTI), he said.

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She said the present government has increased the burden of debt on the country.

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Speaking at the Lahore Chamber of Commerce and Industry (LCCI), Suri said the burden of debt had reached Rs30 trillion while a huge amount was required for debt servicing.

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The combined burden of debt and unfunded pension liabilities is low in relation to personal income and should remain relatively stable over time based on modest future capital and debt issuance plans, rapid amortization and minimal pension liabilities.

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There must be a consensus driven formula for dealing with the huge burden of debt as and setting the economy on the path of sustainable growth.

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Our proactive liability management agenda has decreased the burden of debt on our budget, creating more fiscal space to fund social commitments,' Dominguez said.