1) It saves the government from going into bankruptcy.
2) It checks extravagance on the part of the governments.
3) It preserves the confidence of the lenders.
4) It makes easy for the government to float future loans.
5) It reduces the cost of management of public debt.
6) It saves the future generations from the pressure of public debt.
7) The resources obtained after redemption of the debt would be diverted towards private investments and therefore a favorable climate for investment could be created.
8) Redemption of debt may act as a useful tool to curb deflation.
Judiesiz answered the question on July 10, 2018 at 07:00
- What are the classifications of public debt?
(Solved)
What are the classifications of public debt?
Date posted: July 10, 2018. Answers (1)
- Why is public debt incurred?(Solved)
Why is public debt incurred?
Date posted: July 10, 2018. Answers (1)
- Explain briefly the purposes of taxes.
(Solved)
Explain briefly the purposes of taxes.
Date posted: July 10, 2018. Answers (1)
- State and explain the different kinds of taxes in Kenya(Solved)
State and explain the different kinds of taxes in Kenya.
Date posted: July 10, 2018. Answers (1)
- State and explain the canons of expenditure(Solved)
State and explain the canons of expenditure.
Date posted: July 7, 2018. Answers (1)
- What are the principles of a good budget?(Solved)
What are the principles of a good budget?
Date posted: July 7, 2018. Answers (1)
- Why should the budgets be presented in split or in parts(Solved)
Why should the budgets be presented in split or in parts.
Date posted: July 7, 2018. Answers (1)
- State and explain the types of budgets(Solved)
State and explain the types of budgets.
Date posted: July 7, 2018. Answers (1)
- What are arguments against balanced budget?(Solved)
What are arguments against balanced budget?
Date posted: July 7, 2018. Answers (1)
- What are the factors that affect taxable capacity?(Solved)
What are the factors that affect taxable capacity?
Date posted: July 7, 2018. Answers (1)
- What are the incidences of a tax?(Solved)
What are the incidences of a tax?
Date posted: July 7, 2018. Answers (1)
- State and explain the merits of indirect taxes.(Solved)
State and explain the merits of indirect taxes.
Date posted: July 7, 2018. Answers (1)
- Explain the demerits of indirect taxes(Solved)
Explain the demerits of indirect taxes.
Date posted: July 7, 2018. Answers (1)
- Explain the demerits of direct taxes(Solved)
Explain the demerits of direct taxes.
Date posted: July 7, 2018. Answers (1)
- Explain the merits of direct taxes(Solved)
Explain the merits of direct taxes.
Date posted: July 7, 2018. Answers (1)
- Explain the demerits of progressive taxation.(Solved)
Explain the demerits of progressive taxation.
Date posted: July 7, 2018. Answers (1)
- What are the characteristics of proportional tax?(Solved)
What are the characteristics of proportional tax?
Date posted: July 7, 2018. Answers (1)
- Discuss in details the types of taxes(Solved)
Discuss in details the types of taxes
Date posted: July 7, 2018. Answers (1)
- Discuss the roles of public finance to the developing countries.(Solved)
Discuss the roles of public finance to the developing countries.
Date posted: July 6, 2018. Answers (1)
- Show the similarities and differences between public and private finance.(Solved)
Show the similarities and differences between public and private finance.
Date posted: July 6, 2018. Answers (1)