The
debt a government holds divided by the number of citizens under that government's jurisdiction. The government involved may be a municipality, a national government, or anything in between. It is calculated by taking the total debt, subtracting the government's
cash and cash equivalents, and dividing the quantity by the number of citizens. Net debt per capita is important in determining a government's
creditworthiness and may help a potential
lender or
bondholder calculate the likelihood of
default. See also:
National debt.