Yes, a small number of governments carry little to no public debt, yet most keep some debt as a normal budget tool.
If you searched “are any governments not in debt?”, you want a straight answer and a list you can trust. The snag is that “debt” isn’t one number. It can mean central government bonds only, or a wider “general government” view that also counts local authorities and social funds.
This guide shows what “not in debt” can mean, where the cleanest numbers live, and how to read them without getting tricked by definitional gaps. You’ll also see why even cash-rich states may still issue bonds, and how to spot cases where “zero debt” is built on a narrow slice of the public sector.
What “not in debt” can mean in public finance
People use “debt” the way they use “salary”: it sounds like a single figure, yet it depends on what you count. Before you name a country “debt-free,” decide which bucket you mean.
| Debt phrase you’ll see | What it usually counts | Where confusion starts |
|---|---|---|
| Central government debt | Debt issued by the national treasury | Leaves out provinces, cities, and some state entities |
| General government gross debt | National + local + social funds, before netting assets | Scope varies; some series miss pension funds |
| Public sector debt | General government plus public corporations in some systems | State-owned firms can swing totals a lot |
| External public debt | What the public sector owes to non-residents | A country can have low external debt yet high local debt |
| Domestic public debt | Debt owed to residents, often in local currency | “No foreign debt” headlines skip the rest of the balance sheet |
| Gross vs net debt | Net debt subtracts certain financial assets | Net looks smaller; asset quality still matters |
| Debt-to-GDP ratio | Debt scaled to the economy’s size | GDP jumps can drop the ratio even if debt stays flat |
| Debt stock vs deficit | Stock is total owed; deficit is this year’s gap | A balanced budget can still sit on old debt |
When a chart says “lowest debt,” ask: lowest by which definition? If the definition is narrow, a country can look debt-free while another public balance sheet carries the load.
Are Any Governments Not In Debt? What the data shows
Yes. In the IMF’s World Economic Outlook (WEO) dataset, a handful of economies sit in the low single digits for general government gross debt as a share of GDP. Brunei Darussalam shows around 2–3% in the WEO view, which is close to “almost no debt” by global standards.
“None” is still rare. Even places with tiny debt often keep a small stock of bills or bonds for cash management. A government collects revenue unevenly across the year, then pays salaries, pensions, and suppliers on a steady schedule. Short-term borrowing smooths that timing.
If you want to verify low-debt cases without relying on third-party lists, start with a primary dataset and check the year you care about. Use the IMF WEO general government gross debt series to check countries and years in one place.
Why most governments keep some public debt
Debt isn’t always a distress signal. It’s also a budget tool. These are common reasons a government may borrow even while holding large financial assets.
Cash flow timing and payment systems
Tax receipts bunch up around filing dates. Spending runs every week. Treasury bills bridge that gap. Without bills, ministries may delay payments, which can ripple through contractors and households.
Bond market plumbing
Regular issuance gives local banks and pension funds a place to park savings. It also gives the country a reference rate used in mortgages and business loans. No market, no benchmark.
Budget law choices
Some legal systems allow borrowing for long-lived public works but restrict borrowing for day-to-day spending. That can create steady issuance tied to capital projects.
Currency management choices
Countries with fixed exchange rate regimes may hold large foreign reserves. Issuing domestic debt can help absorb inflows and keep local money growth in check.
So when you see a country with low or near-zero debt, ask what replaced borrowing. It might be steady resource revenue, a large sovereign wealth fund, strict balanced-budget rules, or a smaller state footprint.
Paths to near-zero debt that show up in the data
Low-debt cases tend to cluster around a few patterns. Knowing the pattern helps you judge if low debt is durable.
Resource revenue with cautious spending
Commodity royalties can fund large shares of public spending. When budgets stay conservative, debt stays low. Many such states also keep large liquid buffers for price swings.
Small jurisdictions with limited functions
Small territories or city-states may not fund big defense forces or nationwide welfare systems. Less spending need means less borrowing need. Some also draw revenue from tourism, trade, or finance.
Large reserve buffers and sovereign wealth funds
A sovereign wealth fund is a pool of assets owned by the state. If the fund can fill budget gaps during downturns, debt issuance can stay minimal. A useful follow-up check is transparency: clear reporting on the fund’s liquid share and any off-budget commitments.
Even in these settings, you still want to scan other liabilities. Pension promises, loan guarantees, and state-owned enterprise borrowing can sit off the headline debt number.
How to check whether a government is “debt-free” in practice
Here’s a method you can run quickly, using public datasets, to answer “are any governments not in debt?” for your own list.
Choose one metric and stick to it
Start with “general government gross debt” if you want a wide view that matches many international comparisons. If you only care about bonds issued by the national treasury, use “central government debt.” Keep the metric consistent across countries.
Pull the number from a primary dataset
The IMF Data Mapper presents WEO indicators like general government gross debt as a share of GDP. That’s a fast way to screen countries and years.
Cross-check scope with another source
For many countries, the World Bank hosts public sector debt tables, including quarterly public sector debt tables that break out gross general government debt positions. Quarterly Public Sector Debt tables
Read the notes before you trust the number
Low values can be real. They can also be gaps. If a series shows “no data” for multiple years, don’t infer “zero.” Treat it as unknown and find a national source like a finance ministry report.
Scan for off-balance-sheet risk
Ask three quick questions. Are state-owned firms borrowing heavily? Are there large pension promises outside the series? Are there big loan guarantees for banks or utilities? These don’t always land in gross debt, yet they can become public bills.
How to build a current “low-debt” list without guesswork
Lists on blogs age fast. If you need a list that matches the latest release, build it from the dataset in front of you, then save your work.
Start with a threshold that matches your purpose
Pick a simple rule like “under 10% of GDP” or “under 25% of GDP,” then apply it across the same year for every country. A single threshold won’t settle every debate, yet it keeps your comparison clean.
Use the IMF export when you want the full country table
The IMF Data Mapper offers an export option for the debt series, which lets you sort and filter in a spreadsheet. Start with the WEO debt-to-GDP indicator, export, then sort ascending to see the lowest ratios at the top. Save the sheet so you can rerun it later.
Double-check with a second series when the stakes are high
If your list will drive a report, a classroom project, or an investment memo, pull a second series that is close in definition. World Bank public sector debt tables can help, and national debt offices often publish monthly or quarterly bulletins that show scope in plain language.
One more guardrail: “low debt” doesn’t automatically mean “low risk.” A country with low debt can still face funding stress if it relies on one volatile revenue stream or if its banking system needs a rescue. Debt is one signal, not a full scorecard.
Quick checks before calling a country debt-free
This checklist keeps you from repeating a viral list that mixes measures.
| Check | What to look for | Why it changes the call |
|---|---|---|
| Metric | General government vs central government | Local layers can add large debt stocks |
| Year | The exact year in the table or chart | Debt can jump after one shock or bank rescue |
| Gross or net | Whether financial assets are subtracted | Net can read near zero with a big sovereign fund |
| Scope notes | “No data,” estimates, or partial scope | Missing series can look like a clean zero |
| State firms | Large borrowing by public corporations | Losses can land on the treasury later |
| Guarantees | Explicit guarantees for banks or utilities | They can turn into direct debt after stress |
| Maturity | Short-term bills vs long-term bonds | Short maturities raise rollover pressure |
| Currency mix | Local currency vs foreign currency debt | FX debt can swell if the currency weakens |
Final answer
Yes, some governments run with very low public debt in major datasets, and a tiny group land in the low single digits on the IMF WEO debt-to-GDP series.
If you’re building a list for a project, write the metric, the year, and the dataset source next to each number. That makes your work repeatable and easy to defend for your own notes later.
If you only want the plain takeaway: the world has a few near-zero debt governments, yet “no debt at all” is rare, and “debt-free” claims often rely on a narrow definition.