---
entity_slug: funded_debt
evaluator: null
evaluated_at: '2026-02-23T05:32:35.532124'
overall_score: 4.4
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly distinguishes funded debt from other forms of
    government borrowing by specifying that it involves dedicated revenue streams
    or taxes assigned for repayment. This creates a precise conceptual boundary, though
    it could be slightly more specific about the institutional mechanisms involved.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This concept is directly grounded in Smith's discussion in Book V, Chapter
    3, where he explicitly analyzes funded debt as a distinct stage in government
    borrowing practices. The entity accurately reflects Smith's own terminology and
    analytical framework.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: The "Regulation" domain placement is highly appropriate, as funded debt
    represents a specific regulatory and institutional mechanism for managing government
    finances and public credit. This fits squarely within Smith's analysis of governmental
    financial administration.
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: This entity maps well to S3 (internal regulation/audit) as it represents
    a control mechanism for managing government financial obligations, and potentially
    to S2 (coordination) as it coordinates revenue streams with debt obligations.
    The institutional nature makes it naturally VSM-relevant.
- name: explanatory_value
  value: 4.0
  max_value: 5.0
  rationale: The concept illuminates an important structural mechanism in public finance,
    explaining how governments can credibly commit to debt repayment through institutional
    arrangements. It reveals the evolution from ad hoc borrowing to systematic debt
    management, providing genuine insight into fiscal governance.
---

# Evaluation: Funded Debt

## definition_precision — 4.0 / 5.0

The definition clearly distinguishes funded debt from other forms of government borrowing by specifying that it involves dedicated revenue streams or taxes assigned for repayment. This creates a precise conceptual boundary, though it could be slightly more specific about the institutional mechanisms involved.

## source_grounding — 5.0 / 5.0

This concept is directly grounded in Smith's discussion in Book V, Chapter 3, where he explicitly analyzes funded debt as a distinct stage in government borrowing practices. The entity accurately reflects Smith's own terminology and analytical framework.

## domain_placement — 5.0 / 5.0

The "Regulation" domain placement is highly appropriate, as funded debt represents a specific regulatory and institutional mechanism for managing government finances and public credit. This fits squarely within Smith's analysis of governmental financial administration.

## vsm_relevance — 4.0 / 5.0

This entity maps well to S3 (internal regulation/audit) as it represents a control mechanism for managing government financial obligations, and potentially to S2 (coordination) as it coordinates revenue streams with debt obligations. The institutional nature makes it naturally VSM-relevant.

## explanatory_value — 4.0 / 5.0

The concept illuminates an important structural mechanism in public finance, explaining how governments can credibly commit to debt repayment through institutional arrangements. It reveals the evolution from ad hoc borrowing to systematic debt management, providing genuine insight into fiscal governance.
