What is public borrowing?

Public borrowing is the total amount of money that has been borrowed by the government. The other terms used to refer to public borrowing are government debt, national debt or public debt.

The government issues bonds and securities for borrowing money. All liabilities have to be considered when evaluating the government debt, including pension payments to be paid by the government in the future. Government debt can be broadly classified into internal debt and external debt. Short-term government debts have to be cleared within 1 year, while long-term government debts can be paid in 10 years.