What is referred to as the total money owed by a government to those who purchase its securities?

The total money owed by a government to those who purchase its securities is referred to as the national debt. This encompasses all of the outstanding borrowings that the government has made to cover budget deficits over the years, reflecting the cumulative impact of previous fiscal policies and expenditures. The national debt is an important concept as it indicates the financial obligations the government has and defines the extent of its liabilities.

When a government borrows money, it does so by issuing securities such as bonds, which investors buy. The money raised through these securities is used to fund various government activities and initiatives that often exceed current revenue, leading to borrowing. Understanding the national debt is crucial for analyzing a government's financial health and its ability to manage future fiscal responsibilities as it affects interest rates, inflation, and economic growth.

The other concepts like budget deficit, budget surplus, and balanced budget relate to governmental financial management but do not directly define the total amount owed from past borrowing. A budget deficit occurs when expenses exceed revenues in a given fiscal period, a budget surplus is when revenues exceed expenses, and a balanced budget is when revenues equal expenses. Thus, these terms address different aspects of fiscal policy rather than the total liabilities of a government like national debt does.