News highlights
- As per the recent release of the finance ministry, the government`s total liabilities rose by 2.15 percent to 128.41 lakh crore in the third quarter of the current fiscal year from 125.71 lakh crore in the previous quarter.
- Public debt also showed a rise from 91.60 percent to total outstanding liabilities in December,2021 as against 91.48 percent in the September quarter.
Liabilities and their types
Liabilities show the obligation of the enterprise, the settlement of which is expected to result in an outflow from enterprises of resources embodying economic benefits.Liabilities are classified into three categories:
- Current liability (Short term liability) - The liabilities that are due for one year or more are categorized as short-term liabilities. For example account payable, interest payable, income taxes payable, short-term loan, etc.
- Non-current liabilities( Long term liabilities) - Those liabilities of obligation due more than a year such as Bonds payable, long term notes payable, deferred tax liabilities, capital lease,s, etc.
- Contingent liabilities - The liability that arises due to a certain event is termed a contingent liability. For example; lawsuits, product warranties, etc.
