ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The national debt is the sum of a nation’s annual budget deficits, offset by any surpluses. A deficit occurs when the government spends more than it raises in revenue. To finance its budget deficit, the government borrows money by selling debt obligations to investors.

Detailed explanation-2: -Over the past 100 years, the U.S. federal debt has increased from $408 B in 1922 to $30.93 T in 2022. Comparing a country’s debt to its gross domestic product (GDP) reveals the country’s ability to pay down its debt.

Detailed explanation-3: -Of the nearly $31.46 trillion or so in public debt, about $73.5 billion is not subject to the statutory debt limit; most of that represents the accounting treatment of certain Treasury securities sold at a discount to their face value ($68.2 billion) and debt held by the Federal Financing Bank ($4.8 billion).

Detailed explanation-4: -Notes & Known Limitations. There are six datasets on Fiscal Data which include the national debt, which is referred to as Total Public Debt Outstanding (TPDO). TPDO is the sum of Debt Held by the Public and Intragovernmental (Intragov) Holdings. Some datasets include debt issued by the Federal Financing Bank (FFB).

Detailed explanation-5: -A deficit occurs when the federal government’s spending exceeds its revenues. The federal government has spent $460 billion more than it has collected in fiscal year (FY) 2023, resulting in a national deficit. $