What does the term 'national debt' refer to?

The term "national debt" refers to the total amount of money borrowed by the government that has not yet been repaid. It is the accumulation of all past budget deficits, minus any surpluses that the government has run. Essentially, when a government finds itself spending more than it brings in through revenues, it borrows money to cover the difference, which contributes to the national debt. This borrowing can happen through various means, such as issuing government bonds.

Understanding national debt is crucial because it reflects the fiscal policy and economic health of a country. An increasing national debt can raise questions about the sustainability of a nation's financial practices and its ability to meet future obligations. In contrast, the other terms listed relate to different aspects of government finance: total revenue collected pertains to income, annual budget deficit reflects a short-term measure of fiscal imbalance for a specific year, and the value of government assets relates to what the government owns rather than what it owes.