The article explores how public debt is formed and its role in public finance, especially during economic crises. It looks at different theories on how governments borrow money to fund their expenses. The study shows that public debt can have both positive and negative effects on the economy. By borrowing money, governments can boost economic growth and help society become more fair. The national debt is essentially a set of credit relationships between the government, businesses, and individuals. Overall, government borrowing can be a rational choice if it leads to better outcomes for society.