Government Debt Definition
Government debt is the debt incurred by the national government. This includes money borrowed by the federal government to fund its operations and programs. The U.S. national debt is currently over $22 trillion.
The federal government funds its operations through a variety of revenue sources, including taxes, fees, and other charges. It also borrows money from investors to finance its activities. When the government borrows money, it creates debt. The debt can be in the form of bonds, which are loans that must be repaid with interest.
The size of the national debt has grown significantly in recent years. Some economists worry that the growing debt could lead to higher interest rates and inflation, which would hurt economic growth. Others argue that the debt is manageable and does not pose a serious threat to the economy.
