scholarly journals PUBLIC DEBT AS A SOURCE OF FINANCING FOR GOVERNMENT EXPENDITURES IN THE PERSPECTIVE OF ISLAMIC SCHOLARS

2019 ◽  
Vol 7 (4) ◽  
pp. 285-290
Author(s):  
Imron Mawardi ◽  
Tika Widiastuti ◽  
Debrina Farrah Anova ◽  
Muhammad Ubaidillah Al Mustofa ◽  
Dewie Saktia Ardiantono ◽  
...  
Keyword(s):  
Public Debt ◽  
Foreign Debt ◽  
General Knowledge ◽  
The Public ◽  
Islamic Perspective ◽  
External Sources ◽  
Internal Sources ◽  
The Government ◽  
State Projects ◽  
Conceptual Research

Purpose of the study: This study aims to examine foreign debt as a source of financing for economic development. This research is expected to provide (1) an overview of debt as a source of funding for state projects, (2) investigate its impacts and (3) offer additional knowledge of its Islamic perspective. Methodology: This research is a qualitative study using the study literature approach. This research is conducted by analysing books, literature, journals, and magazines with themes related to the focus of the discussion on this study. It is expected that the method used can provide insight, general knowledge, and develop the view of Islam in relation to foreign debt. Main Findings: The government has to ensure that the state has the ability to pay off its obligations in the future; guarantee that loans have to be free from interest; prioritize taking loans from internal sources rather than external sources. In Addition, debts are not intended for deferred needs and not taking loans that exceed their needs. Applications of this study: basically the results of this study can be applied to any country that considers the use of public debt, like other Islamic systems. Novelty/Originality of this study: This research is conceptual research in an Islamic perspective. This study successfully examined comprehensively related to the public debt with the Islamic approach.

Von der Finanzkrise zur Schuldenkrise

2011 ◽  
Vol 62 (1) ◽  
Author(s):  
Walter Wittmann
Keyword(s):  
Public Debt ◽  
Credit Rating ◽  
Debt Crisis ◽  
Foreign Debt ◽  
Subprime Crisis ◽  
The Public ◽  
Interbank Markets ◽  
Long Time ◽  
The Government ◽  
To Come

SummaryThis paper reviews the main developments leading to the actual financial and debt crisis. It starts with the expansionary monetary policy experiment in the US in 2002, which led to a bubble in stock markets and real estate markets. When the bubble burst, the latter provoked the subprime crisis. Banks holding subprime assets made substantial losses. Especially investment banks relying on refinancing in the capital market got in trouble. When Lehman Brothers failed the interbank markets collapsed and it was only due to the collective action of central banks and government that the financial system could be stabilized. The government involvement raised the public debt in many countries to unsustainable heights transforming the financial crisis into a public debt crisis. In Europe the weaker Euro member countries, burdened with both high public debt and high foreign debt, experienced steeply rising risk premia. In order to avoid a default of a member country as well as a default of their own banks, the stronger Euro countries made available guaranties, which will, in the longer run, diminish their own credit rating. The paper concludes with the skeptical note, that both the banking crisis and the public debt debt crisis may be with us for a long time to come.

scholarly journals The Impact of Public Expenditure and Public Debt on Taxes: A Case Study of Jordan

2017 ◽  
Vol 6 (3) ◽  
pp. 10
Author(s):  
Ateyah Alawneh
Keyword(s):  
Public Debt ◽  
Positive Impact ◽  
Capital Expenditure ◽  
Linear Regression Method ◽  
The Public ◽  
Finance Capital ◽  
Internal Sources ◽  
The Government ◽  
The Impact

The study aimed to estimate the impact of capital expenditure, current expenditure and external and internal public debt on taxes in Jordan during the period 2001–2014. It adopted the multiple linear regression method by E-views program to study the impact of the independent variables (represented by capital expenditure, current expenditure, external and internal public debit) on the dependent variable (taxes). The statistical analysis showed a statistically significant, positive impact of both the capital expenditure and the current expenditure on taxes. The study also found a statistically significant, positive relationship between external and internal public debt on taxes in Jordan. The study presented a number of recommendations, most importantly for the public sector, taking into account the capital expenditure, the current expenditure and the external and internal public debt, which directly affect the tax increases in Jordan. There is a need to use non-traditional alternatives to finance capital expenditures instead of external public debt and internal sources, such as Sukuk Murabaha Islamic participation, to finance capital expenditure for the Government to build schools, hospitals and other government services. The Government should take into account the current expenditure of tax revenues, while capital expenditure should be covered by non-traditional means.

scholarly journals Esham, the Origin of Sukuk for Facing the Crisis: Historical Experience

2021 ◽  
Vol 10 (1) ◽  
pp. 45
Author(s):  
Khairunnisa Musari
Keyword(s):  
Lower Cost ◽  
Low Cost ◽  
Foreign Debt ◽  
Historical Experience ◽  
The Public ◽  
Goods And Services ◽  
The Past ◽  
State Budgets ◽  
The Difference ◽  
The Government

Pandemic brings a crisis. This makes world leaders have to work hard and smartly in managing state budgets. During the heyday of Islam, Muslims also faced crises. Given that time the power of Islam mastered many areas of the world, it can be assumed that the crisis that occurred in the past was a global crisis as it is happening today. The difference is the crisis that occurred at the time because of losing the war. This paper tries to describe the historical experience of the esham, one of the fiscal instruments in the Islamic world that helped the Ottoman Empire overcome the crisis. Esham has mobilized low-cost funds from the public in a relatively concise time. Esham served as a better choice than looking for foreign debt. As the origin of sukuk, esham has simpler structure so that can be used as an alternative to sukuk with a lower cost. To deal with a crisis, esham may intervene in the economy. Esham funds to the real sector in turn will help the government drive the economy as well as control prices in the market for goods and services. Therefore, esham has the potential in facing the crisis.

scholarly journals The Public Debt of Ukraine and the Budget Expenditure for Its Service

2018 ◽  
Vol 80 (1) ◽  
pp. 30-39 ◽  
Author(s):  
T. H. Bondaruk ◽  
O. S. Bondaruk ◽  
N. Yu. Melnychuk
Keyword(s):  
Public Debt ◽  
Debt Management ◽  
Public Budget ◽  
Sharp Drop ◽  
The Public ◽  
Debt Burden ◽  
Debt Dynamics ◽  
External Sources ◽  
Public Debt Management ◽  
Made In

the public debt is deepened, the visions of the public debt as a phenomenon burdening the national economy, found in various schools of economics, are reviewed. It is demonstrated that the high internal and external dept in parallel with the respectively growing expenditure for its service is a pressing problem for Ukraine, calling for an urgent solution. This raises the need for seeking ways to improve the public debt management mechanisms. The article’s objective is to deepen the theoretical and methodological framework for assessment of the public debt in Ukraine and the budget expenditures for its service. It is demonstrated that the public debt in Ukraine results from the public budget deficit, high sovereign borrowing from internal and external sources. The econometric assessment of the time series on budget expenditures for debt service and repayment in Ukraine is given. The analysis of the public debt dynamics in Ukraine shows that not only the increasing volume of public debt and State-guarantee debt, but also the increasing budget expenditures on its service and repayment are dangerous. The high deficit of public budget is persisting, which growth is caused, inter alia, by the payment commitments. The expenditures on service and repayment of public debt constitute a large share in the public budget expenditures. Forecasting calculations made in the article demonstrate the upward tendency in the public budget expenditures on repayment and service of the public debt of Ukraine, thus signaling the growing threats to the budget security of Ukraine. The main factors for the rapidly increased debt burden in Ukraine over the latest years are identified: the considerable devaluation of domestic currency (Hryvnya), sharp drop in GDP, the shrinking internal consumer demand, etc.    It is demonstrated that the risk of the increasing payments for service of public debt is an essential and chronic factor generating problems in public finances and affecting the budget security of Ukraine.  

scholarly journals Trend and Impact of Public Debt in Nepalese Economy

2015 ◽  
Vol 4 ◽  
pp. 85-89
Author(s):  
Yadab Raj Sharma
Keyword(s):  
Economic Growth ◽  
Public Debt ◽  
The Public ◽  
The Government

The public debt or public borrowing in Nepal is considered to be an important source of income of the government. Public debt helps to achieve targeted economic growth and to narrow down the gap between expenditure and revenue. However, the country is falling into debt trap in the form of interest and principal payment. In this article an attempt has been made to find out the situation, trend and impact of public debt on Nepalese economy.DOI: http://dx.doi.org/10.3126/av.v4i0.12363Academic Voices Vol.4 2014: 85-89

HDZ leader could supplant Croatia's non-party premier

2016 ◽  
Keyword(s):  
Decision Making ◽  
Public Debt ◽  
Social Situation ◽  
Content Type ◽  
Reform Agenda ◽  
The Public ◽  
Nationalist Party ◽  
Ethnic Tensions ◽  
The Government ◽  
Uncertain Outcomes

Significance The package could be the government's swan song. One coalition party, the centre-right Bridge (Croatian: Most) of Independent Lists, strongly supported a reform agenda from the beginning, but Croatia's main nationalist party, the Croatian Democratic Union (HDZ), did not. This, in addition to key appointments, has become a major point of dispute between them, blocking decision-making. HDZ leader Tomislav Karamarko has been frustrated in his ambition to control the government and especially the security apparatus. Impacts Political instability could cause further political and ethnic tensions, with uncertain outcomes. Persistent deadlock will worsen Croatia's parlous economic and social situation. Instability could frustrate consolidating Croatia's exit from its six-year recession in 2015 and reducing the public debt from 87% of GDP.

IMF will worry about Cairo's debt burden later

2017 ◽  
Keyword(s):  
Interest Rate ◽  
Public Debt ◽  
Government Expenditure ◽  
Fiscal Year ◽  
Indirect Taxation ◽  
Content Type ◽  
The Public ◽  
Debt Burden ◽  
The Government ◽  
Domestic Interest Rate

Significance The review will take into account the effects of measures taken thus far, in particular the flotation of the Egyptian pound, and will assess the government’s budget for the 2017-18 (July-June) fiscal year. Impacts The government will struggle to reduce the deficit because of the scale of public debt and the record high domestic interest rate. Government expenditure on wages will rise at a much lower rate than inflation. The public will also face further rises in indirect taxation, revenue from which is projected to rise by 40%. The IMF is unlikely to raise any serious objections to the government’s plans.

scholarly journals Welfare State and Epistemic Communities of Fiscal Austerity in Brazil: from Lula da Silva to Jair Bolsonaro (2003-2020)

2021 ◽  
Vol 36 (1) ◽  
pp. 195-216
Author(s):  
Carlos Eduardo Santos Pinho
Keyword(s):  
Welfare State ◽  
Conceptual Framework ◽  
Public Debt ◽  
Epistemic Communities ◽  
Policy Makers ◽  
The Public ◽  
Accelerated Growth ◽  
Fiscal Austerity ◽  
The Government ◽  
The Welfare State

Abstract This article is based on a theoretical-conceptual framework and empirically grounded research to analyze the construction of discourse and institutional insertion of ideas from epistemic communities of fiscal austerity in Brazil, given the recent upsurge in liberal-orthodox policies and their repercussions for the welfare state. The study explores who these actors and institutions are, how they act, how they are organized, and who trains or finances them. The main objective is to unveil how the ideas in defense of fiscal constriction were formulated and disseminated, starting after the first term (2003-2006) of President Lula da Siva’s government (2003-2010), when developmentalist policies replaced the neoliberal convention. The ideas of fiscal constriction were intensified during the government of President Dilma Rousseff (2011-2016), and gained characteristics of a unified proposal, materialized in the austerity program Uma Ponte para o Futuro (2015) (a bridge to the future). After President Rousseff’s impeachment in 2016, policy-makers in the government President Michel Temer and his successor Jair Bolsonaro rapidly put forward the austerity program. The epistemic communities of fiscal austerity argue that the public policies outlined in the 1988 Brazilian Constitution are the main cause of the increase in spending on welfare, the accelerated growth of public debt, and the probable insolvency of the country.

Risks are high despite Turkey’s policy 'normalisation'

2020 ◽  
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Risk Premium ◽  
Financial Stability ◽  
Foreign Debt ◽  
Content Type ◽  
The Public ◽  
High Inflation ◽  
The Government

Significance With the lira at a record low, the Central Bank continued to tighten monetary policy this week, funding the market through competitive one-month repo tenders at rates of around 12.5%. In recent weeks, the government and Central Bank have taken a series of steps to modify the expansionary and in some cases unorthodox policies adopted during the COVID-19 pandemic. Impacts Foreign portfolio investors could shun the Turkish market for some more months, and the risk premium will remain high. Although this year’s annual contraction in GDP, at 3-4%, may be less severe than expected, the recovery may decelerate or be interrupted. The lira may fall further with concerns about foreign debt, forex reserves, budgets, inflation and financial stability persisting into 2021. Given the weak lira, the jobs crisis and high inflation, the government will struggle to persuade the public it has managed the crisis well.

Pressures on embattled Zambian government will grow

2019 ◽  
Keyword(s):  
World Bank ◽  
Public Debt ◽  
External Debt ◽  
The United States ◽  
Bank Loans ◽  
Content Type ◽  
The Public ◽  
Currency Depreciation ◽  
Debt Burden ◽  
The Government

Subject Zambian debt crises. Significance Both the IMF and World Bank have cut their growth projections for Zambia, compounding concerns about currency depreciation, inflation and escalating external debt. Amid public anger at worsening corruption, the government and President Edgar Lungu are struggling to contain mounting dissent. Impacts Lusaka’s ties to China, and criticism from the United States, could undermine future access to concessional IMF and World Bank loans. An opposition alliance will struggle to stay united and withstand authoritarian pressures from the government in advance of the 2021 polls. Growth will be slower than expected this year and next, and currency depreciation will continue to exacerbate the public debt burden.

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