The Impact of Public Debt on Fiscal Sustainability During and After a Pandemic

The ongoing global socio-economic events have exerted a profound influence on the economic landscapes of countries worldwide. In this context, Georgia confronted the challenge of securing funds, leading to a surge in national debt and a discernible shift in the country’s economic stability. This paper aims to elucidate the public debt situation during the pandemic and post-pandemic periods and its correlation with the fiscal stability of the nation. Notably, the dynamics of national debt growth played a pivotal role in stabilizing the country, as it furnished essential financial resources for executing programs, implementing measures, fortifying healthcare, advancing infrastructure, and fostering growth in the business sector, among other initiatives. Through an empirical analysis, this paper delves into the changes in national debt during the pandemic and post-pandemic periods, meticulously examining their repercussions on the country’s fiscal stability.