ICSE BoardEnglish MediumSTD 10EconomicsPublic Debt2 Marks
Question
What is debt trap?
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Answer
Debt trap refers to a situation when the government of a country has to raise fresh loans just to pay the interest charges on the earlier loans borrowed. The government is trapped in vicious circle of borrowing. Under it, the government has to go on borrowing after borrowing. India is heavily in a situation of debt trap. The government debt is approximately 65% of its GDP. This deadly diseases is called debt trap.
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