What is the difference between a deficit and a national debt?

The deficit and the national debt are different, although they're related. The national debt is the sum of a nation’s annual budget deficits, offset by any surpluses. A deficit occurs when the government spends more than it raises in revenue. The government borrows money by selling debt obligations to investors to finance its budget deficit.

Why is national debt less important than GDP?

America's national debt in dollars is generally viewed as less important than its proportion to the country’s gross domestic product (GDP) or the debt-to-GDP ratio because a country’s tax base grows alongside its economy. It increases revenue that the government can raise to service the debt.

Why is the national debt increasing every year?

The national debt has increased every year over the past ten years. Interest expenses during this period have remained fairly stable due to low interest rates and investors’ judgement that the U.S. Government has a very low risk of default.