The national debt is the total accumulated amount the federal government owes from years of borrowing to cover budget deficits. Unlike municipal and most provincial governments that must balance operating budgets, the federal government can run deficits financed through bond issuance. National debt affects municipalities indirectly through federal government's fiscal capacity for program spending and transfers. High debt levels may constrain future federal investments in infrastructure, housing, or other areas important to municipalities. Debt-to-GDP ratio is commonly used to assess debt sustainability. Debates about appropriate debt levels involve considerations of economic conditions, interest rates, and intergenerational fairness.