Analyzing the Impact of Borrowed Money on Development and Public Debt
In the world of economics, numbers and percentages often dominate the conversation. However, the real question we should be asking ourselves is not how much money we are borrowing, but rather what we are using that money for. Will it be invested in projects that will bring development and ensure a return on investment, or will it be squandered on unproductive practices that only serve to increase public debt?
The current state of affairs in our country paints a concerning picture. With the public debt set to reach 9.2 billion euros, or 68.2 percent of the gross domestic product, and a budget deficit of 4.8 percent of GDP, it is clear that we are treading dangerous waters. According to the Law on Budgets, our deficit should not exceed 3% of GDP, and our total debt should not surpass 60% of GDP. These figures are not just arbitrary limits; they are meant to ensure the financial stability of our country.
The recent announcement of aid from Hungary and internal borrowing may provide some relief in the short term, but it is essential to consider the long-term implications of these decisions. As economist Abil Bausch points out, any debts we incur now will have to be paid by future generations. It is crucial that we invest in projects that will generate economic growth and help us service our debts effectively.
Former finance minister Cevdet Hayredini draws attention to the example of Japan, a country with significant debts but a strong focus on investing in projects that bring added value to the economy. We must learn from their approach and ensure that the money we borrow is used wisely and strategically.
University professor Sinisha Naumoski provides a more nuanced perspective on the issue, highlighting the importance of analyzing the state’s external debt and international investment position. While the numbers may seem alarming at first glance, a deeper analysis reveals a more complex picture. It is essential to consider all factors when evaluating our financial situation.
In conclusion, the debate around public debt and borrowing is not just about numbers; it is about the future of our country and the well-being of its citizens. We must be mindful of how we use borrowed money and ensure that it is invested in projects that will benefit our economy in the long run. Only then can we secure a stable and sustainable financial future for generations to come.
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