Phase IFoundation
Background
Overview
Understanding public debt is crucial for analyzing a country's fiscal health, macroeconomic stability, and the long-term sustainability of government finances. It impacts economic growth, inflation, interest rates, and the government's ability to fund welfare and development programs, making it a core topic in economic policy.
Public debt, also known as national or government debt, represents the total financial obligations accumulated by a central government over time due to persistent budget deficits. It is the sum of all past borrowings that have not yet been repaid, used to finance government expenditures when revenues are insufficient.