Meaning of Public Debt
Public Debt can be defined as a loan taken by the government from its public and foreign countries as well. The government can take loans from the public, financial institutions, banks, business organisations, etc., and from foreign countries as well. Public debts are subject to a fixed interest and are repaid by the government to the creditors after the stipulated period expires.
According to J.K. Mehta, “Public debt is a comparatively modern phenomenon and has come into existence with the development of democratic form of governments in the world.”