Which of the following is typically included in a debt management policy?

A debt management policy is a crucial component for any government or organization that intends to manage its borrowing responsibly. The inclusion of limitations on permissible debt within the policy is essential because it sets clear parameters regarding how much debt the organization can incur. This helps ensure that the level of borrowing remains sustainable and within the organization's capacity to repay, preventing financial distress and promoting fiscal health.

Limiting permissible debt also helps maintain the organization’s credit rating, as excessive debt can deter investors and increase borrowing costs. By defining these limits, the policy provides a framework that guides decision-making processes regarding financing strategies, ensuring they align with long-term financial goals. This strategic approach to debt management enables organizations to plan responsibly for both current financial needs and future obligations.

In contrast, while assessing project risks, funding private projects, or proposing new public services are important elements of financial planning and project management, they do not focus specifically on the guidelines governing debt management. Therefore, they are not typically included within a formal debt management policy.