188k views
5 votes
what is the purpose of a debt service fund? Does a debt service fund require budgeting? why or why not?

User Plpicard
by
4.9k points

1 Answer

2 votes

Answer:

The purpose of a debt service fund is to pay back long term debt issued to finance a specific government project alongside with the principal and interest accrued to it.

Part B: Yes

Step-by-step explanation:

A debt service fund require budgeting because with budgeting, payments of debts are easily managed and it also ensures fund availability as at the moment it is needed.

User Umriyaev
by
4.3k points