Key Points
Key Points: Public Debt
Public debt is government borrowing when its spending is more than its income.
| Basis | Internal Debt | External Debt |
|---|---|---|
| Source of borrowing | Borrowed within the country (citizens, banks, RBI, institutions) | Borrowed from foreign governments, banks, IMF, World Bank, etc. |
| Currency | Borrowed in domestic currency | Borrowed in foreign currency |
| Management | Easier to manage | Harder to manage |
