What are the problems caused by increasing government debt?
When the government has a lot of debt, it has to face many problems. The biggest problem is managing the economy. If the government has a lot of debt, it is not in a position to spend money in good times and bad times. This makes it difficult to manage the economy.
If the government has a lot of debt, other countries will feel that there is a lot of risk in India, so they will not give money to india at low interest. This will force the government to pay more interest. If the government takes a lot of debt, the coming generation will have to repay a lot of debt. The government has given a lot of money to the banks, the burden of which will also fall on the coming generation.
Similarly, when the government takes a lot of debt, there is less money in the market, due to which private companies are not able to invest as much money as they want to. This can slow down the country's economy. When private companies are not able to invest money, they are not able to expand their business, bring new technology and do good work, due to which the country's economy can weaken. At the same time, banks and other financial institutions are also affected.
Taking loans becomes necessary for the development of the country. Most of the big economies of the world run on debt. Taking loans is not bad, but its proper use is important. If the country's debt has increased, then the size of the economy has also increased.
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