1: The use of surplus budget-if the budget of the government is surplus during a particular year then this surplus can be used to repay public debts.
2: Sinking fund-The government can create a sinking fund and every year a specific amount is deposited in this sinking fund.After some years,this fund is used to repay a public debt.
3: Capital levy-it is a special tax which is imposed by the government on rich persons to repay a public debt.
4: Conversion-The government can get a new loan at low rate of interest and this loan can be used to repay any precious loan carrying high rate of interest.The method is useful to reduce the burden of interest.
5: Repudiation-it means to refuse to repay any public debt.It lies within the power of government to repudiate its obligations.
Bom answered the question on March 24, 2018 at 10:31
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