public sector borrowing requirement

views updated

public sector borrowing requirement (PSBR) Amount a government needs to borrow to cover its expenditure. A government principally raises its money by taxes and excise duties. If it has to spend more than the amount covered by these sources, it must raise the rest by borrowing. To do this, it issues short-term and long-term stocks and bonds, on which it pays interest. These loans form part of the national debt.

More From encyclopedia.com

About this article

public sector borrowing requirement

Updated About encyclopedia.com content Print Article

You Might Also Like