National Debt

National debt is the total amount of money that a country's government owes to creditors, which can include individuals, businesses, and other governments. It accumulates when a government spends more money than it collects in revenue, typically through taxes. To cover the deficit, the government borrows funds, often by issuing bonds. National debt isn't inherently bad; it can finance growth and investments. However, excessive debt can lead to higher interest rates, reduced spending on public services, and potential economic instability if not managed properly. The debt is usually expressed as a percentage of the country's Gross Domestic Product (GDP).