The two main differences are as follows:

1. Different definitions

Government debt refers to bonds issued by the government at home and abroad or government debt formed by borrowing from foreign governments and banks; Implicit debt refers to the fact that in the planned economy period, the individual workers do not insure the old-age insurance, and the pension is promised by the state.

2. Different forms

Government debt is in the form of bonds or loans; Implicit debt is the repayment of personal pension by the state.

3. Different functions

Government debt is divided into central government debt and local government debt; Implicit debt mainly includes implicit debt of "old people" and implicit debt of "middle people".

Implicit government debt refers to the debt that the government directly borrows or promises to repay with financial funds, and illegally provides guarantees that exceed the legal government debt limit, mainly including: debts borrowed by state-owned enterprises and institutions on behalf of the government and supported by government guarantees or financial funds; In the process of setting up government investment funds and purchasing services, the government has agreed to buy back the investment principal and promised to guarantee the bottom income. And by undertaking the future payment obligations of the government, the government has reformed the purchase of services. Generally speaking, unlike the debt within the government debt limit included in the budget management, all illegal borrowing or guarantee activities by the government outside it belong to the act of increasing the government's hidden debt.

Explicit government debt, namely government debt, refers to the relatively standardized local government debt allowed by regulatory laws and regulations. (such as local bonds) and debts in the form of non-bonds, including the part paid by finance in the debt of financing platform companies. And government departments and agencies, institutions, state-owned enterprises and public utilities. General government debt is a debt repaid by the general public budget.

It should be noted that in the stock conversion, local governments will convert some hidden debts into corporate debts to reduce the government's debt repayment pressure, which will significantly increase the risk of investment recovery.