PUBLIC DEBT AND ECONOMIC GROWTH: OPPORTUNITIES AND CHALLENGES

Abstract

Abstract - Public debt has become an important component of modern economic management, enabling governments to finance development projects, infrastructure, social welfare programs, and economic recovery measures. While public borrowing can stimulate economic growth by funding productive investments, excessive debt may create financial instability and hinder long-term development. This paper examines the concept of public debt, its relationship with economic growth, the opportunities it creates, and the challenges associated with high levels of government borrowing. The study also explores policy measures for maintaining sustainable public debt and promoting economic prosperity.

Keywords: Public Debt, Economic Growth, Government Borrowing, Fiscal Policy, Economic Development, Debt Sustainability.