Consider the government's debt- to- GDP ratio. A significant reason for a government to maintain a low debt- to- GDP ratio is so that

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Maintaining a low debt-to-GDP ratio allows the government to have the flexibility to use expansionary fiscal policy (such as increasing government spending or cutting taxes) to stimulate the economy during a recession. This is because a high debt-to-GDP ratio can limit the government's ability to borrow and spend money without negatively impacting the economy. A low debt-to-GDP ratio also demonstrates the government's commitment to responsible fiscal management, which can increase investor confidence and promote economic growth.

Consider the Government's Debt- To- GDP Ratio