Principle of self liquidating debt top 5 married dating sites
When government borrows from people by using coercive methods, loans so raised are referred to as compulsory public debt.Under the Compulsory Deposit Scheme in India, tax-payers have to compulsorily deposit a prescribed amount and defaulters are punished. Usually, public borrowings are voluntary in nature.When the government floats a loan by issuing securities, members of the public and institutions like commercial banks may subscribe to them.
For redeemable debts, the government has to make some arrangement for their repayment. Whereas loans for which no promise is made by the government regarding the exact date of maturity, and all that the government does is to agree to pay interest regularly for the bonds issued, are called irredeemable debts. Therefore, redeemable debts are preferred on grounds of sound finance and convenience.Unproductive loans do not add to the productive capacity of the economy, so they are not self-liquidating.