National Debt

• Budget deficit?


  the excess of government spending over government receipts for a time period (usually a year)

  The deficit must be covered by borrowing from the private sectore

  This is through issuing bonds
• Government net borrowing?


  net borrowing is the new borrowing undertaken by the government each year minus any debt that is paid off

  Also known as PSNB

  If net borrowing occurs, it will increase national debt

  If more is paid off, it will reduce national debt
• National debt?


  the sum of all outstanding debt

  Also known as Public Sector Debt
• Debt to GDP ratio?


  National debt divided by GDP x 100