26 lines
659 B
Markdown
26 lines
659 B
Markdown
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<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-5-chapter-03 -->
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# Funded Debt
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## Definition
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Debt obligations that are backed by specific funds or revenues set aside for
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their repayment, typically involving the assignment of particular taxes or
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revenue streams to pay interest and eventually repay the principal.
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## Source Chapter
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Book V, Chapter 3
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## Context
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Smith explains funded debt as the second stage of government borrowing, where
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specific revenue sources are mortgaged to ensure repayment, contrasting it with
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the earlier practice of unfunded debt.
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## Economic Domain
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Regulation
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---
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