- 10 Marks
PSAF – May 2021 – L2 – Q2a – Fiscal Policy and Public Finance
Define debt sustainability analysis, outlining objectives and benefits.
Question
Debt management is a key component of public finance management that enables the government to meet its financing needs at minimum costs and within acceptable levels of risk. One of the diagnostic tools that the government uses in managing its debt portfolio is to conduct an annual Debt Sustainability Analysis (DSA).
Required:
Explain the term “Debt Sustainability Analysis,” identifying its THREE objectives and FIVE benefits.
Find Related Questions by Tags, levels, etc.
- Tags: Debt Management, Debt Sustainability, Economic Analysis, Public Finance
- Level: Level 2
- Topic: Fiscal Policy and Public Finance
- Series: MAY 2021
Report an error