Government debt in their own currency is a common way of financing government finances. At the end of the day government and public are the members of the same community. The total amount of money borrowed plus total amount of money lent is equal to zero. As long as the interest paid on government debt is less than the growth rate of the economy it won`t create a problem for governments. Debt/GDP rate will always be stable. Inflation also affects the borrowing interest rate. Normally, people buy government bonds if the interest is higher than the inflation. From government point of view, the bond interest should exceed the inflation but lower than the growth rate, that`s the ideal situation. However, this balance may not be achievable in all developing countries, they have not only domestic debt but also foreign debt. Double deficit. That is very hard to manage.

Ndoricimpa, A. (2022), "Threshold effects of public debt on economic growth in South Africa: an application of a regression kink with an unknown threshold", Journal of Economic and Administrative Sciences, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JEAS-04-2022-0106

Government Debt indicates more expenses compared to the income of the Government. the heavy debt on the government may affect the economy in a negative sense as it leads to an increase in the burden of the interest on the Government and less amount the Government spends on the development of the Economy. ultimately, the whole economy will not develop at a proper pace.

If public debt is used in real investment, which leads to an increase in the mass of goods and services and thus an increase in the supply of goods and services, that is, a decrease in the general level of prices and thus an increase in real incomes and an increase in demand, which incites an increase in supply and thus an increase in economic growth rates, and a strengthening of the government’s financial position.