Definition

Noun: - The total amount of money that a country's central government has borrowed and not yet repaid: This refers specifically to the cumulative financial obligations of a national government, resulting from borrowing to fund expenditures that exceed its revenue. It is distinct from debts owed by private entities, individuals, or local governments.

Usage

The term is used to discuss a nation's fiscal health, economic policy, and the long-term financial obligations of its central government. It is typically measured as a total sum or as a percentage of the country's Gross Domestic Product (GDP).

Examples

• The country's national debt has risen significantly after the recent economic stimulus packages.
• Economists debate the long-term effects of a high national debt on economic growth.
• Reducing the national debt was a central promise in the government's fiscal plan.

Advanced Usage

• "Servicing the national debt": This phrase refers to the government's ongoing activity of paying the interest on its accumulated debt.
  • A large portion of the annual budget is dedicated to servicing the national debt.
• "National debt ceiling": This is a legislative limit on the total amount of money the government is authorized to borrow.
  • Congress must vote to raise the national debt ceiling to avoid a default.

Variants and Related Words

• Sovereign debt (n): Debt issued by a national government, often used in an international finance context. While closely related, "sovereign debt" can specifically refer to debt held by foreign creditors.
• Public debt (n): A broader term that can encompass the debts of all levels of government within a country, including national, state, and local debt. "National debt" is a component of the total public debt.
• Deficit (n): The annual shortfall when a government's expenditures exceed its revenues. The national debt is the accumulation of annual deficits (minus any surpluses).

Synonyms

• Government debt: A general synonym, though it can be less specific regarding the level of government.
• Federal debt (primarily used in countries with a federal system like the U.S.): Often used interchangeably with national debt to mean the debt of the central/federal government.

Related Phrases

• "Burdened by debt": Often used to describe a country with a very high and potentially unsustainable level of national debt.
  • The nation, burdened by debt, was forced to implement severe austerity measures.
• "Debt-to-GDP ratio": A key metric for assessing the size of the national debt relative to the size of the country's economy.
  • Investors are concerned about the country's rising debt-to-GDP ratio.

Noun

1. the debt of the national government (as distinguished from the debts of individuals and businesses and political subdivisions)