"Unfunded liability" refers to a government commitment to

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"Unfunded liability" refers to government spending commitments that are not appropriately funded or backed by tax revenue, creating a gap between the amount promised and the actual available resources. This often pertains to entitlement programs such as social security, Medicare, or pension plans, where the government has made promises to provide certain benefits to its citizens or employees, but it has not identified enough revenue streams to cover those costs in the long term. As a result, unfunded liabilities can contribute to growing national debt or budget deficits and put pressure on policymakers to either raise taxes or reduce benefits in the future.

"Unfunded Liability" Refers to a Government Commitment to