Government's Borrowing Power refers to the ability of government to borrow.
|Arguments in favor of||Arguments opposing|
|It provides ability for government to borrow.|
|Government's borrowing power provides a source of funding for government expenditure (especially during a cyclical decline in tax revenue).||Government's ability to borrow may be abused to finance government waste as the impact is not immediately felt by the citizens.|
|The borrowed amount plus interest shall be repaid at its maturity.|
|The interest payments on government debt can act as a deterring factor for excessive borrowing.||The interest payments on government debt may be financed through new borrowing, potentially resulting in perpetual borrowing and unsustainable levels of debt.|