NATIONAL DEBT Meaning and
Definition
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National debt refers to the total amount of money or financial obligations owed by a government to its creditors, both domestic and foreign. Also known as public debt, it represents the cumulative borrowing or deficits incurred by the government over time.
Governments borrow money to finance their expenses, such as infrastructure projects, social welfare programs, defense expenditures, and administrative costs. Therefore, national debt serves as an indicator of a nation's fiscal health, reflecting the extent to which a government has borrowed funds to fulfill its obligations.
The national debt primarily consists of bonds, treasury bills, and other securities issued by the government. These debt instruments carry a promise to repay the principal borrowed with interest to the investors at a specific maturity date. The debt is considered a liability for the government since it must be paid back over time while taking into account the interest accrued.
National debt can have significant implications for a country's economy. High levels of debt may lead to increased interest payments, diverting funds away from essential services and hindering economic growth. Excessive borrowing can also raise concerns about a government's ability to repay its debts, potentially leading to a loss of confidence among investors, higher borrowing costs, and a deteriorating credit rating.
Monitoring and managing national debt is crucial for governments to maintain financial stability and avoid a debt crisis. It often involves balancing the need for borrowing to promote economic growth and adequately fund public services with measures to reduce debt burdens over time through fiscal discipline, revenue generation, and expenditure control.
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The money owing by a nation or state.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
Common Misspellings for NATIONAL DEBT
- bational debt
- mational debt
- jational debt
- hational debt
- nztional debt
- nstional debt
- nwtional debt
- nqtional debt
- narional debt
- nafional debt
- nagional debt
- nayional debt
- na6ional debt
- na5ional debt
- natuonal debt
- natjonal debt
- natkonal debt
- natoonal debt
- nat9onal debt
Etymology of NATIONAL DEBT
The word "national debt" has its origins in the Latin language. The word "national" is derived from the Latin word "nationem", which means "nation". The term "debt" comes from the Latin word "debitum", which means "that which is owed". In the late 18th century, the term "national debt" began to be used to refer to the total amount of money owed by a government or a nation.
Similar spelling words for NATIONAL DEBT
- nationalisation,
- national park,
- nationalization,
- nationalistic,
- national anthem,
- nationalise,
- national service,
- nationalize,
- national guard,
- national income,
- national capital,
- national flag,
- national trust,
- nationalist,
- nationality,
- national holiday,
- national leader,
- nationally,
- nationalism,
- national bank.
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