What Is the Debt Snowball?

Direct debt refers to debt that must be assumed under any circumstances, not dependent on any event, and is a liability that can be predicted and controlled according to certain specific factors, such as government internal and external debt and pension liabilities stipulated by law, etc. .

Direct debt

Direct debt refers to debt that must be assumed under any circumstances, not dependent on any event, and is a liability that can be predicted and controlled according to certain specific factors, such as government internal and external debt and pension liabilities stipulated by law, etc. .

Chinese name

Direct debt

Foreign name

Direct debt

Example

Government internal and external debt

Types of

Modern words

(1) Direct explicit debt, usually refers to government debt listed in the fiscal budget. ^[1]

(1) Direct and explicit debt. ^[2]

In addition to national debt:

Debts due to underpayment of wages. Due to financial difficulties, arrears of wages in administrative institutions have become commonplace. At one time, more than half of the cities and counties in the country were unable to pay wages on time. According to preliminary statistics, at the end of 1998, the nation's accumulated wages owed was about 2.2 billion yuan. Moreover, the areas where the problems are concentrated are mainly the less developed areas. This is the government's direct debt, and the possibility of forming central government debt is very high.

The losses in the grain purchase and circulation are posted. The long-term upside-down of food prices has become a heavy burden on finances. The losses caused by upside-down food prices have been added to the accounts year after year. Coupled with the poor management of state-owned grain enterprises, the food loss account has been expanding like a snowball. Similar to this situation are the loss of cotton caused by policy factors and loss of foreign trade companies.

Township financial debt. The financial difficulties of townships and villages before the reform of rural taxes and fees were a common problem across the country. Except for a few developed towns that did not have deficits, most townships had debts.

(2) Direct and hidden debt.

It mainly refers to the debt formed by the gap in social security funds. With the development of the market economy, China's social security system has undergone major changes, from a pay-as-you-go system to a gradual accumulation model. This created the problem of debt repayment to the original employees. Under the planned economy system, these workers are employed under low wages and have not formed pension accumulation. Now or in the future, they will require the government to make necessary compensation according to the length of their working years or their contributions (even if the "newcomers and new measures "The same is true for the elderly, but the compensation method and compensation time limit are different). In addition, the government's burden of agricultural relief is also increasing.