Recently, the budget deficit of public sector is common issue for all countries. Budget deficit is often sorted out by the mean of governmental debts. In this article, it is aimed to explain the economic and social effects of governmental debts. The previous and current alternatives regarding governmental debts are investigated in varioıts aspects. Possible effects of governmental debts are deseribed by using Turkish example. Debt management is signifıcant as much as debt usage in the view of economic and social ejfects. Loaning is obviously important for the development of all countries. However, wrong debt management can create problem s related to its economic and social effects in middle and long term for development of countries. Sources, targets, usage places and ternı stmcture of public debts results different economic and social ejfects. Nowadays public debts are considered as normalpublic revenue. However public debts have resulted same vicious circles especially for deve/aping countries. Hot money and high interest rates phenomena have been the highest costs in developing countries.