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The national government has the ability to use debt to fund current operating expenses due to its unique financial capabilities and borrowing options. Unlike state and local governments, which may have more restrictions on their ability to incur debt for current expenses, the national government can issue treasury bonds, notes, and bills. These instruments are often purchased by individuals, banks, and foreign governments, effectively allowing the national government to finance its operations through borrowing.

Furthermore, the national government can operate with a deficit and has a higher capacity to absorb debt due to its power to levy taxes and create currency. This flexibility contrasts with state and local governments, which are generally expected to maintain balanced budgets and may only borrow for capital projects, such as infrastructure, rather than for ongoing operational costs. Hence, while all levels of government can take on debt, it is primarily the national government that utilizes debt to cover current operational expenses in a way that is integral to its functioning.