Cyclopedia

Debt Service

Summary

The term debt service as it applies to the Federal Government is largely the same as the general definition: It is the cash required to repay the interest and principal on a debt over time. As with anything, for an entity like the Federal Government, which has the best credit rating in the world and the power to print money (that is create its currency, whether literally printed or not), as it applies to Federal borrowing comes with technicalities. For example, there used to be an agency called the “Bureau of the Public Debt”, though it was merged with the “Financial Management Service”, and is now known as the Bureau of the Federal Service.


GAO Glossary of Terms and Definition (September 2005)

Debt Service

Payment of interest on, and repayment of principal on, borrowed funds. The term may also be used to refer to payment of interest alone. (See also Means of Financing.) As used in the Congressional Budget Office’s (CBO) Budget and Economic Outlook, debt service refers to a change in interest payments resulting from a change in estimates of the surplus or the deficit.

[PAGES 42]

Previous:

Debt, Federal

Next:

Deeming Resolution

 

FrillBreak