Fiscal Deficits and the National Debt

This short video explains the difference between government borrowing (the fiscal deficit) and the accumulated level of government debt drawing on data from the UK and other countries.

The National Debt

The national debt is the accumulated value of the fiscal deficits and surpluses which the Government run each year

Government borrowing

The level of government borrowing is the difference between government spending and income in a given year

It is possible for borrowing to fall whilst the National debt continues to rise.