0 money saved by a company or government for the payment of future debts --
1 money that a company pays into an account so that it can pay investors, lenders, etc. the money it owes them: --
2 an account into which all owners of apartments in a building make regular payments for future repairs to the building: --
There are very many concerns which have a rigid sinking fund, but this is simply an invitation to slack finance.
If this debt continues to pile up and no adequate sinking fund can be established, the situation may become indistinguishable from repudiation.
Not only would it be unbalanced but, to the degree that it exceeded £224,000,000, we would have what might be called a negative sinking fund.
Suppose that there were no sinking fund and that the annual payments were then reduced to £77.
I know perfectly well where this fantastic inter-departmental sinking fund comes from.
It appears to be a matter of doubt whether the local councils may or may not bear the sinking fund charges themselves.
These deposits will be made in respect of (a) interest, and (b) sinking fund.
The only real sinking fund is where you have a surplus of revenue over expenditure out of which public debt can be discharged.
