According to the CICA PSA Handbook, "One important indicator of a government's financial position is its net debt, calculated as the difference between its liabilities and financial assets. The statement of financial position must account for and clearly present that difference because it bears directly on future revenue requirements and on a government's ability to finance its activities and meet its liabilities and commitments."
Required
Discuss the validity of the statement that net debt bears directly on future revenue requirements and affects a government's ability to finance its activities and meet its liabilities and commitments.