Public debt

Speaking of public finances, public debt entails all the financial commitments made in the form of bonds or loans by the State, by public authorities and by bodies, which depend directly on it (certain public enterprises, social security bodies, etc.).

Public debt is the product of the accumulation of past financing needs of public administrations, resulting from the difference between the revenues (tax receipts in particular) and the expenses (notably budgetary spending) of these administrations. Hence, the debt increases each time a public deficit is covered by a bond or loan.