Third, the first-car policy can increase public debt. The public debt is the debt that people make without knowing that they cannot really afford a car and not a hundred percent ready to pay for it. When the government started this policy ,suddenly those people would buy a new car without thinking enough about the dept. In addition, Critics blame the government’s populist policies for the spiralling public debt, including the wage hike and the first-car-buyer and first-home-buyer schemes, tax cuts for which will lead to higher public debt. The critics say fiscal sustainability is under threat, amid the sovereign-debt crises in Europe and the United States. Therefore, this policy affect them.