What is meant by government debt?

Government debt refers to the accumulated total of government deficits over time. When a government spends more than it collects in revenue, it runs a deficit. These annual deficits accumulate, contributing to a larger total debt amount. This accumulation represents the total amount owed by the government to creditors and can include various forms of borrowing, such as issuing bonds. Understanding government debt involves recognizing that it not only reflects the current financial obligations but also the historical financial decisions that have led to the current fiscal situation. This debt can be important for economic policymaking and influences factors like interest rates and inflation.