Government Debt

Government debt is the total amount of money that a country's government owes to creditors, which can include other countries, institutions, or individuals. Governments borrow money to fund public services, infrastructure projects, or cover budget deficits when expenses exceed revenue from taxes and other sources. This debt is usually issued as bonds or loans, which the government promises to repay with interest over time. Managing government debt is important because excessive borrowing can lead to higher taxes or reduced public services, while responsible management helps sustain economic stability and future growth.