The private sector often demands rates of return far greater than public sector borrowing costs, especially in the current low interest rate environment. (larrysummers.com)
Low growth means high unemployment, which means more welfare and less productivity, prompting higher public sector borrowing. (politics.co.uk)
The fall in the total public sector borrowing requirement over the same period has been somewhat larger, reflecting significant consolidation by State governments, partly offset by smaller surpluses of public trading enterprises. (rba.gov.au)