The limit could depend on a lot of other things. In theory, it's possible that you are paying 100% of revenue on debt service yet still the best option is to take on more debt. This is if you believe that investing the money raised via additional debt provides returns that outweigh the increase in debt service costs. So in that situation, additional debt can even lower the debt service / income ratio.
So this is meant to illustrate that the limit on debt is more a function of the concrete circumstances. In this line of argumentation, debt is not limited by a mathematical formula that just takes GDP and similar statistics as input.
So this is meant to illustrate that the limit on debt is more a function of the concrete circumstances. In this line of argumentation, debt is not limited by a mathematical formula that just takes GDP and similar statistics as input.