The concept of inter generational equity has a bearing on Principles of taxation and public borrowin...........

Economic Affairs Others

Download Solution PDF

The concept of inter-generational equity has a bearing on

Principles of taxation and public borrowing
Sustainable Development

Which of the above is/are correct?

1 only

2 only

Both 1 and 2

None

छोटे Courses बड़े Results

Master Others

Prepare through Micro-courses

Try Now

Explanation:

Statement 1: “Ricardian equivalence” says that if government borrows too much from the public, it can repay this debt only by increasing the taxes, on either the present generation or the coming generations. Therefore, there should be a sense of equity in public borrowing programs that do not put a lot of burden on the coming generations.

Statement 2: This is clear as more pollution and consumption will only deplete resources for the coming generations.

The essential idea is that we should not compromise on the needs of the future generations against the present generation.