| Code | GC.DOD.TOTL.GD.ZS |
| Indicator Name | Central government debt, total (% of GDP) |
| Long definition | Debt is the entire stock of direct government fixed-term contractual obligations to others outstanding on a particular date. It includes domestic and foreign liabilities such as currency and money deposits, securities other than shares, and loans. It is the gross amount of government liabilities reduced by the amount of equity and financial derivatives held by the government. Because debt is a stock rather than a flow, it is measured as of a given date, usually the last day of the fiscal year. Central government is the part of general government that includes all administrative departments of the national executive, legislative, and judicial functions, other central agencies and those non-market producers controlled by the central government, whose competence extends normally over the whole economic territory. This indicator is expressed as a percentage of Gross Domestic Product (GDP) which is the total income earned through the production of goods and services in an economic territory during an accounting period. |
| Source | Government Finance Statistics Yearbook and data files, International Monetary Fund (IMF) |
| Topic | Public Sector: Government finance: Deficit & financing |
| Dataset | WDI |
| Unit of measure | % |
| Periodicity | Annual |
| Aggregation method | Weighted average |
| Statistical concept and methodology | Methodology: Government Finance statistics are compiled in accordance with international standards: Government Finance Statistics Manual, 2014 or 2001 editions. Specific information on how countries compile their Government Finance statistics can be found on the IMF website: https://dsbb.imf.org/
Statistical concept(s): Government Financial Statistics are compiled within a conceptual and reporting framework suitable for analyzing and evaluating fiscal policy, especially the performance of the general government sector and the broader public sector of any economy. |
| Development relevance | This indicator is related to Government finance statistics. Government finance statistics provide a detailed snapshot of a government's fiscal operations and health. They encompass data on revenue, expenditures, deficits, and debt levels, which are essential for crafting fiscal policy, budget planning, and economic forecasting. These statistics help policymakers manage public finances effectively, make informed decisions on taxation and spending, and set priorities for resource allocation. For investors, analysts, and the international community, government finance statistics serve as key indicators of a country's economic stability and creditworthiness. They also play a crucial role in ensuring transparency and accountability, as they allow citizens and oversight bodies to track how public funds are managed and spent, fostering democratic engagement and governance. More specifically, this indicator is related to the government debt. Statistics on government debt provide essential information for economic planning, as they can influence a country's fiscal policies and spending. Government debt levels are also a key indicator for investors, who use this information to assess the risk of investing in a country's bonds. High debt levels can lead to lower investor confidence and higher interest rates. Furthermore, debt statistics are crucial for evaluating the sustainability of a government's fiscal policy. They help determine whether adjustments are needed to avoid potential default. These statistics also enable international comparisons, allowing for benchmarking against other countries and identifying potential issues. Accurate debt statistics are vital for the formulation of monetary and fiscal policies, including decisions on taxation and government spending. They also promote public awareness by providing transparency and accountability in how public funds are managed. Lastly, credit rating agencies use government debt statistics to assign credit ratings, which affect a country's borrowing costs and its ability to attract investment. Overall, government debt statistics are a key component of a country's economic analysis and are essential for informed decision-making by policymakers, investors, and the public. |
| Limitations and exceptions | For most countries central government finance data have been consolidated into one account, but for others only budgetary central government accounts are available. Countries reporting budgetary data are noted in the country metadata. Because budgetary accounts may not include all central government units (such as social security funds), they usually provide an incomplete picture. In federal states the central government accounts provide an incomplete view of total public finance.
Data on government revenue and expense are collected by the IMF through questionnaires to member countries and by the Organisation for Economic Co-operation and Development (OECD). Despite IMF efforts to standardize data collection, statistics are often incomplete, untimely, and not comparable across countries. |
| License URL | https://creativecommons.org/licenses/by/4.0/ |
| License Type | CC BY-4.0 |
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