Public Debt
Public debt refers to the total amount of money that a government owes to creditors, which can include individuals, institutions, and other countries. When a government spends more than it collects in revenue, it borrows money to cover the difference, typically by issuing bonds. This debt must eventually be repaid, often with interest. Public debt can be a useful tool for funding important projects or stimulating the economy, but if it becomes too high relative to the country's income, it can lead to financial difficulties and impact economic stability.
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Public debt, also known as national or government debt, refers to the total amount of money that a government owes to its creditors. This debt is usually accumulated through borrowing to finance public projects, cover budget deficits, or respond to emergencies, such as economic crises. Governments typically issue bonds to raise funds, which investors buy. Public debt can be beneficial for funding important services and infrastructure but can also lead to concerns about future repayment, interest costs, and economic stability if it grows too large compared to the nation's economy. Responsible management is crucial for long-term financial health.