There are reasons and needs for the public debt, these includes:
1. To meet the cost of huge capital projects: sometimes regular soures of company , firm and even an organization revenue such as taxes, fees, fines etc. May be inadequate to meet a company's financial requirements to carry out major capital projects. If the company is short of money to meet the cost of such projects, it will supplement income from there sources by borrowing.. Even if the company doesn't want to go ahead to borrow from other organization or firm , he doesn't have any choices because. He will be stranded and the company might be down totally.
2.To meet the cost of an organization emergencies such as conflicts: wagging a conflicts or meeting an organization emergencies entails huge financial involvements. It may not be possible to raise enough money from the regular sources to finance a conflicts. To meet the costs of a national emergency additional money can be raisen by the organization by collecting debts or borrowing from a 3rd party.
3. To finance public works or to meet increasing demand for social infrastructures: Due to rapid increases in population, demand for social services has increased. So borrowing may therefore become necessary to augment regular sources of an organization revenue.
1. To meet the cost of huge capital projects: sometimes regular soures of company , firm and even an organization revenue such as taxes, fees, fines etc. May be inadequate to meet a company's financial requirements to carry out major capital projects. If the company is short of money to meet the cost of such projects, it will supplement income from there sources by borrowing.. Even if the company doesn't want to go ahead to borrow from other organization or firm , he doesn't have any choices because. He will be stranded and the company might be down totally.
2.To meet the cost of an organization emergencies such as conflicts: wagging a conflicts or meeting an organization emergencies entails huge financial involvements. It may not be possible to raise enough money from the regular sources to finance a conflicts. To meet the costs of a national emergency additional money can be raisen by the organization by collecting debts or borrowing from a 3rd party.
3. To finance public works or to meet increasing demand for social infrastructures: Due to rapid increases in population, demand for social services has increased. So borrowing may therefore become necessary to augment regular sources of an organization revenue.
