Spending promises made by the government that are effectively a debt, although they are not included in the usual debt statistics, are known as:
A)burden of debt.
B)structural deficit.
C)implicit liabilities.
D)constructive debt.

Question

Quizplus · Accepted Answer

Implicit liabilities are spending promises made by the government that have an impact on future debt levels, but are not included in the usual debt statistics. Examples include future pension and healthcare benefits for current government employees or commitments to Social Security payouts. These promises create a burden on future generations who will have to pay for them either through taxes or increased government borrowing.

Spending Promises Made by the Government That Are Effectively a Debt