The formation and economic essence of the public debt as a component of the public Finance

This paper investigates the formation and nature of the public debt. The place of public debt in the system of public finance, as well as the conceptual basis for the formation of public debt in the conditions of the economic crisis. Carried out an analysis of theoretical approaches to the implementation of scientific schools of public debt policy. This led to the conclusion that the modern theory of public debt is characterized as a compromise of different theoretical views on deficit financing of public expenditure. Developing a systematic approach to the analysis of public debt, based on the recognition of his positive influence on the development of the economy, both positive and negative factors associated with the growth of government debt. Depth analysis of the formation of public debt is based on the separation of cause-and-effect relationships that occur in the process of government borrowing and have an objective character. The article concludes that, by its nature, the national debt is a set of economic relations, which are manifested in the form of credit relations that arise between the state, on the one hand, corporations and individuals - on the other, in which the state acts as a borrower. Drawing by increasing debt additional financial resources, the government receives new opportunities for economic growth and of the catch from the developed countries. Societal choices in the face of the state only rational when government borrowing to help improve the overall efficiency, contribute to a more equitable distribution of income, achieve better results for the different sectors of society.