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25 June, 16:10

what is the purpose of a debt service fund? Does a debt service fund require budgeting? why or why not?

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  1. 25 June, 18:22
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    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

    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.
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