burden of debt

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.

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.
This further increases the burden of debt servicing each year.
5 percent interest to pay net hydel profit to KPK province and tried to put burden of debt servicing on masses but failed to do so.
What's your plan to ensure that students not only go to college in increasing numbers but also graduate--and do so without a burden of debt that will hinder their life choices?
The Government talks about reducing the national debt but they don't mind young people taking on this burden of debt.
At the time, Perry said the order was in "grave, and I underscore grave, financial difficulty, with a significant burden of debt.
What they failed to acknowledge was the fact that the actual burden of debt is rising at a steady rate of about PS100 billion per annum.
The report said many people it interviewed said the burden of debt had left their emotional well-being "in tatters" and their problems will not necessarily be solved just by rearranging their finances.
Enterprise Minister Fergus Ewing said: "The Scottish Government continues to take action to address these problems and introduce measures to help those people in Scotland who are struggling under the burden of debt.
Large fiscal deficits and the difficulty in consolidating fiscal accounts have quickly produced a burden of debt persistently above 50% of GDP, well above the average for 'BB'.
He added: "It should be disposing of these leases and reducing the burden of debt on the State.
Duvel Moortgat also said its financial results were negatively influenced by the weak dollar and the increased burden of debt as a result of the De Koninck acquisition.