Understanding State Debt, Social Security, and Regional Finance
Classified in Social sciences
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State Debt
State debt is comprised of capital borrowed by the state, representing the financial liabilities they have with the private sector. It serves as an alternative to taxes for funding public spending. State debt can be purchased in the primary market (banks or boxes) or the secondary market (stock exchange). Key features include:
- It is not collected coercively and does not constitute consideration for goods and services provided.
- It is obtained through emissions allowed by law.
- The issuance of public debt takes the form of securities.
- The operation does not establish a permanent link between the Administration and lenders.
Social Security Financing
Resources for funding social security include:
- Contributions from the General State Budget.
- Contributions