- 6 Marks
AT – Nov 2018 – L3 – Q1b – Tax administration in Ghana
Explaining the benefits of foreign debt over domestic debt for government financing.
Question
The use of debt for a country’s financing has engaged the attention of economists and also the ordinary man in the interest regarding its impact on our economy. While some prefer domestic debt, others are making a case for foreign debts as part of government’s fiscal policy.
Required:
What are the benefits to a government for going in for a foreign debt as opposed to going in for domestic debt as a support to the revenue base from taxes? (6 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Domestic Debt, Fiscal Policy, Foreign Debt, Government Revenue
- Level: Level 3
- Topic: Tax administration in Ghana
- Series: NOV 2018
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