Question

Define Public Debt.

Answer 1

Definition:
Public debt refers to the total amount of money the government borrows to meet its expenditure needs that exceed its revenue. It consists of loans taken from domestic or foreign lenders and includes both external and internal debt. The government issues bonds or borrows funds from financial institutions, individuals, or other countries. Public debt must be repaid over time with interest, and the government uses various sources of revenue, like taxes or state-owned assets, to service this debt.