ABSTRACT
When the government spends more than it receives, this results in the issue of some sort of security to cover the deficiency. The aggregate of securities issued over time is called the national debt. The total amount of the debt has now been looked at, and it has been shown how much of this is issued by the central government and how much by local authorities and by nationalized industries. The phrase burden of the debt is unfortunately one that seems to be embedded in any discussion about the national debt. Internal borrowing is a rearrangement of assets. External borrowing, on the other hand, permits an import of real resources, either of consumption or capital goods. The debt represents a transfer of income from those who pay taxes to those who own the securities. Although the debt has increased greatly in money terms, as a percentage of national income it shows a marked decrease since 1935.
