Question

When politicians commit to making a large future expenditure without simultaneously committing to collect enough taxes to pay for it, this is an example of a/an A. Budget deficit. B. Unfunded liability. C. Political corruption. D. Debt crisis

Answer 1

When politicians commit to making a large future expenditure without simultaneously committing to collect enough taxes to pay for it, this is an example of an "unfunded liability".

A liability is a future obligation or execution commitment that one gathering owes to another at some future date in time. It is regularly settled through an installment or execution of an administration.  

An Unfunded Liability is utilized to portray any risk that does not have funds put aside for it. It tends to be computed by deciding the distinction, anytime, by which future installment commitments surpass the normal future stream of financing.