WHAT IS NATIONAL DEBT

in Economics2 days ago

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National debt often referred to as public debt or external debt is the total amount of money a country owes it's creditors
This shows that Debt is applicable to Everyone therefore one owes including the federal government.
Most times countries borrow in order to fund deficit budget instead of cutting important expenses or country can also borrow to fund capital project that can be of help to the people in the long run

federal government debt is different from state and individual debt which means states are also eligible to loan some certain amount of money to fund project within the state and this debt is different from federal debt also individual can take loan to fund their education know as students loan and can also take loan for business or to fund their lifestyle that is not included in the federal debt.

As of ending of 2024 global debt was around one hundred and two trillion dollars ($102T) with the United States owing around $36.22T

While China follows suit with $15T and Japan is the third highest borrower with $11T

Countries often borrows from other countries or from multinational financial institution like IMF or world bank that fund project directly. Countries can also borrow from its citizens by issuing Government bonds and sometimes government from other countries purchases bonds from another country because they always come with high interest

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