OUTLINE

Topic: THE NATIONAL DEBT.

Introduction:
- Definition of National Debt.
- Sources of National Debt

INITIAL PARAGRAPHS

Problem 1: Affecting the public directly.

Huge borrowings lead to raise in interest rate.
Increase in bond yields due to high National Debt.

Problem 2: Inflationary Pressures

National Debt causes inflation.
Reduction in the value of exchange rate.

Problem 3: Increase in taxes.

Increase in taxes can cause further recessions
Higher debt interest payment.