Government debt refers to the total amount of money that a government owes to creditors. This debt can arise from borrowing to cover budget deficits, which occur when a government's expenses exceed its revenues. Governments often issue bonds to raise funds, promising to pay back the borrowed amount with interest over time. Governments may accumulate debt for various reasons, such as funding public services, infrastructure projects, or responding to economic crises. While some level of debt can be manageable, excessive debt may lead to financial challenges, affecting a country's credit rating and its ability to invest in future growth.