Public debt in Meghalaya refers to borrowings by the state government.
Public debt is the total amount of money that a government owes to its creditors. It can be used to finance a variety of government activities, such as infrastructure projects, social programs, and wars. Public debt can be either internal or external. Internal debt is debt that is owed to residents of the country, while external debt is debt that is owed to foreign residents.
Public debt can be a useful tool for governments to finance their activities. However, it can also be a burden, as it can lead to higher taxes and inflation. Governments need to carefully manage their public debt to ensure that it does not become too large.
Here is a brief explanation of each option:
- Option (a): Borrowings by the state government. This is the correct answer. Public debt refers to the total amount of money that a government owes to its creditors. It can be used to finance a variety of government activities, such as infrastructure projects, social programs, and wars. Public debt can be either internal or external. Internal debt is debt that is owed to residents of the country, while external debt is debt that is owed to foreign residents.
- Option (b): Foreign aid received. Foreign aid is money or other resources that are given by one country to another country. It can be used to finance a variety of development projects, such as building schools and hospitals. Foreign aid is not considered to be public debt, as it is not a loan that the government has to repay.
- Option (c): Taxes owed by citizens. Taxes are compulsory payments that are made by citizens to the government. They are used to fund government activities, such as education, healthcare, and infrastructure. Taxes are not considered to be public debt, as they are not a loan that the government has to repay.
- Option (d): International trade deficits. An international trade deficit occurs when a country imports more goods and services than it exports. This can lead to a decrease in the value of the country’s currency and an increase in the country’s debt. International trade deficits are not considered to be public debt, as they are not a loan that the government has to repay.