Plain meaning
Debt owed by a government, usually resulting from past borrowing and accumulated deficits.
Also called
government debt
federal debt
net debt
Key points
- Public debt is affected by deficits, surpluses, interest costs, economic growth, and accounting choices.
- Debt can be measured in dollars or relative to GDP.
- Interest costs on public debt can affect future budget flexibility.
- Debt figures should be read with the specific measure and level of government being discussed.
Why it comes up
Budget and fiscal-anchor articles often discuss public debt to explain the government's fiscal position and future tax or spending room.