Question

Difference between public debt and private debt in a tabular form

Answer 1

Government debt (also known as public debt, national debt and sovereign debt) is the debt owed by a central government. ... By contrast, the annual "government deficit" refers to the difference between governmentreceipts and spending in a single year.

Answer 2

Public Debt:

1. The government can frequently avail long term credits.

2. These loans are taken by the government for the welfare of the people.

3. Due to its creditworthiness, the government can avail loans on a low-interest rate

Private Debt:

1. Private companies or individuals cannot take long term loans.

2. These loans are taken by individuals to maximize profit and satisfaction.

3. Due to the risk of the lender in providing loans to individuals the rates of interest remains high.