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Who ends up paying public debts? The government, state-owned enterprises, or the people?

Question:

Who ends up paying public debts? The government, state-owned enterprises, or the people?

Public Debt

Public debt is also referred to as the national debt or sovereign debt it is the money that the government owes the outside parties. These could be other governments, banks, corporations etc.The public debt may be transferred from one regime to another.

Answer and Explanation:

The government raises most of its revenue through taxation, fine and fees, this therefore means that the people pay the public debt or a bigger percentage of the debt while the other income may come from profitable state owned enterprises.


Learn more about this topic:

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Long-Term Debt: Definition, Cost & Formula

from Financial Accounting: Help and Review

Chapter 8 / Lesson 7
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