Question

In the context of government finance, what does 'debt resource mobilisation' primarily involve?

• A. Increasing tax revenue through higher rates.
• B. Borrowing funds from domestic or international lenders.
• C. Selling government assets to generate income.
• D. Reducing government expenditure on public services.

Answer 1

Answer:

B. Borrowing funds from domestic or international lenders.

• Debt-based mobilisation is the process of raising funds through borrowing, which creates a future obligation to repay the principal and interest.