National debt

National debt, amount of money owed by a government, borrowed to pay expenses not covered by taxes. The U.S. national debt totaled approximately $3 trillion by 1991. National debts are incurred to pay for wars, public construction programs, recessions, etc. To obtain money, governments sell bonds or short-term certificates to banks, other organizations, and individuals. Some governments in crisis have defaulted on their debt or devalued the currency.