Public - Government debt

Government or public debt can be categorized as internal debt, allocated to the lenders within the country, and external debt, allocated to the foreign lenders. Governments usually borrow the loan by issuing securities such as government bonds and bills. Public or government debt can be seen as an indirect debt of the tax payers.

Government debt is the money payable by any level of governments such as central government, federal government, or local government etc. payments for goods and services that the government has contracted for but not yet paid, is considered as government debt.

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