b) The use of debt by countries to finance national budget has engaged the attention of economists,

tax practitioners and the ordinary man in the interest regarding its impact on the economy. While

some prefer domestic debt, others are making a case for foreign debts as part of governments fiscal

policy.

Required:

Present a report on the benefits to a government for going in for a foreign debt as opposed to going in

for domestic debt as a support to revenue base from taxes. (10 marks)