riigivõlas

Riigivõlg, also known as sovereign debt, refers to the total amount of money owed by a national government. This debt is typically accumulated through the issuance of government bonds, treasury bills, and other debt instruments to finance its expenditures when tax revenues are insufficient. Governments may borrow for various reasons, including funding public services, infrastructure projects, defense spending, or to manage economic crises.

The accumulation and management of riigivõlg are key responsibilities of a country's finance ministry or treasury department. The level of riigivõlg is often expressed as a percentage of the country's Gross Domestic Product (GDP), providing a measure of its debt burden relative to its economic output. A high debt-to-GDP ratio can indicate potential financial strain, while a lower ratio suggests greater fiscal stability.

There are various ways governments can manage their riigivõlg. These include issuing new debt to pay off old debt, economic growth that increases GDP and thus lowers the debt-to-GDP ratio, and fiscal consolidation measures such as reducing government spending or increasing taxes. The cost of servicing this debt, measured by interest payments, can represent a significant portion of a government's annual budget. International organizations like the International Monetary Fund (IMF) and credit rating agencies monitor national debt levels and provide assessments of a country's creditworthiness.