An increasing proportion of the national budget, an estimated 30%40% per year, was allocated to defence, and a large budget deficit raised the public debt burden substantially.
Therefore, the additional debt burden of a leveraged recapitalization makes a firm more vulnerable to unexpected business problems including recessions and financial crises.
Nevertheless, the government continued borrowing, mainly to face an increasing debt burden, while it tried vainly to maintain the high-growth strategy.
