Legal Definitions - public debt

Public debt is the amount of money owed by a government to its creditors. This can include debts owed to individuals, businesses, and other countries. Public debt is a liability that must be paid back with interest.

Examples of public debt include:

• A country borrowing money from another country to fund a largeinfrastructure project
• A state government issuing bonds to pay for public schools
• A city taking out a loan to build a new sports stadium

These examples illustrate how governments can accumulate debt in order to finance projects or services that they cannot afford to pay for upfront. However, this debt must be paid back over time, which can lead to financial challenges for the government and its citizens.