Does public debt impose a burden? Explain.

Yes public debt imposes a burden on the economy. It arises when the government borrows from internal and external sources to meet its energy requirement. It is created in two ways:

1. Taxes are imposed to reduce the burden of debt or the government creates a new currency. Both of these practices lead to an inflationary situation in the economy.

2. It creates a huge burden on the future generation to pay back the loans and advances.