Federal Debt Law and Legal Definition

Federal debt means the amount borrowed by the government from the government accounts or from the public. For instance, money borrowed by the Treasury of the Federal Financing Bank (FFB) from the public or other funds or accounts is a federal debt. Federal debt can be classified into four types such as gross federal debt, debt held by the public, debt held by government accounts, and debt subject to statutory debt limit. It is also called as national debt, or public debt, or government debt.