Borrowing is a financial activity and it is needed for growth of economy and production of goods and services.
At the individual level also, each one has to match the earnings and expenses. But as there are some minimum essentials for a human life, the income should be sufficient enough to satisfy them. There may be some who may not have sufficient means to even satisfy the essential basic needs. It is here that the welfare measures of society and government comes in. The gap is filled by free ration, subsidies, grants and aids ,free facilities etc.
Even those people who generally live within their means also may have some unexpected situations when they need urgent money. As they have means to compensate it later, they borrow the needed money to repay with or without interest as per the borrowing terms.
Anther scenario is of entrepreneurs starting productive ventures and business. The promoters may not have the full initial capital or later working capital to raise their own. So they have to borrow. The governments have discovered that availability of sufficient capital is the main catalyst for growth of production of goods and services and growth of GDP and growth of nation's economy and thus people's financial well being.
Hence borrowing is not to be ridiculed or blamed. It is a necessary activity. However it is to b ensured that borrowing is for a productive activity or for a very essential need. Borrowing for splashing and non-productive spending, especially when one does not have sufficient income to repay will lead into debt trap and financial collapse.
If borrowing is not good and to be stopped, then banking will not exist, and depositors will not get their interest.
