Public debt, also called “government debt” or “national debt, ” refers to the amount of repayables of government to other parties while external debt reflects foreign outstanding borrowing by public and private sector. It is normally presented as a percent of gross domestic product (GDP). Many countries have critical burden of public debts that put enormous pressure on country’s growth but best governments always maintain favorable balance of payment by keeping export surplus high and never go for deficit budgeting while making budget and take optimum advantage of their natural resources to keep their public debts at lowest level.
Countries, generating less from exports, experience shortage of foreign currency to pay for import that widen trade deficit, cause difficulty to service external debt burdens as a result foreign repayables may rise beyond sustainable levels. According to expert, small and poorest countries should keep public debt lowest upto 40% of GDP however bigger economies can afford to have debt higher than their GDP. Below are top ten countries with the lowest levels of public debt.
| Rank | Country | % OF GDP (2013 est) |
|---|---|---|
| 1. | Liberia | 3.30 |
| 2. | Oman | 4.40 |
| 3. | Libya | 4.80 |
| 4. | Estonia | 6.00 |
| 5. | Kuwait | 6.40 |
| 6. | Tajikistan | 6.50 |
| 7. | Azerbaijan | 7.50 |
| 8. | Uzbekistan | 7.60 |
| 9. | Russia | 7.90 |
| 10. | Equatorial Guinea | 11.00 |
Source: CIA factbook
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