1. Issuing public bonds to cover fiscal deficits is a common practice in countries around the world. This is because from the perspective of the debtor, public bonds have the characteristics of voluntariness, payment and flexibility; from the perspective of the creditor, public bonds have the characteristics of safety, profitability and liquidity.

2. To a certain extent, the issuance of public bonds is beneficial to both the government and the subscribers. It is also the most acceptable to the public to make up for the fiscal deficit through the issuance of public bonds.

3. When it is difficult to increase taxes and cannot issue additional currency, it is still a feasible measure to use the method of issuing national bonds to make up for the fiscal deficit. By issuing bonds, the government can absorb idle funds from units and individuals and help the country tide over financial difficulties.

Extended information

The main characteristics of national debt:

1. The creditors of national debt can be domestic or foreign citizens, legal persons or other organizations, or they can be certain The government of a country or region and international financial organizations, while the debtor can generally only be a country.

2. The occurrence, change and elimination of the legal relationship of national debt mostly reflects the unilateral will of the state. Although compared with other financial legal relationships, the legal relationship of national debt is an equal legal relationship, but it is different from the general legal relationship. Compared with the creditor's rights and debts relationship, it reflects a certain degree of subordination

3. Treasury bonds have the highest credit rating and the best security of the creditor's rights and debts relationship.

Baidu Encyclopedia - Fiscal Deficit

Baidu Encyclopedia - National Debt