What term refers to the total amount of money a government owes, often associated with national fiscal policy?

The term that refers to the total amount of money a government owes is "National Debt." This concept encompasses all the outstanding borrowings a government has incurred throughout its operational history, usually through the issuance of bonds and loans to finance budget deficits. Understanding national debt is crucial for comprehending a government's fiscal policy and its economic implications, including impacts on interest rates, inflation, and governmental financial obligations.

In contrast, a "Deficit" pertains to a situation where a government's expenditures exceed its revenues within a specific fiscal year, leading to the need for borrowing. A "Budget" is a detailed financial plan that outlines expected revenues and expenditures for a set period, while a "Surplus" refers to the scenario where revenues exceed expenditures, allowing the government to pay down existing debts or save for future use. Therefore, "National Debt" is the most accurate term for representing the cumulative amount owed by the government.