The Monograph is written in Latvian and summarises results of the research carried out on the base of 2003 - 2012 world data on government debt and economic development. The Monograph contains introduction, five chapters, conclusion, list of used references and annexes. It includes 219 pages of text, including 47 pages of annexes, 76 figures, and 46 tables. The list of references includes 145 sources: scientific papers, laws and regulations of the Republic of Latvia, annual reports of the Treasury of the Republic of Latvia, Eurostat database, World Bank and IMF database, international credit rating agencies reports. The first chapter extends classification of the government debt crisis management tools and develops classification of defaults on the base of historical review and modern situation analysis. The second chapter examines the Latvian government debt policy and debt management legal and regulatory provisions as well as analyses public debt trends in Latvia The third chapter analyses public debt trends in the economy of the world as whole, world regions and, particularly, in the EU, as well as evaluates the relationship between the state debt and economic and financial indicators. The fourth chapter develops national financial security evaluation methodology. The methodology was drafted on the base of contend analysis of the scientific papers and international rating agencies documents and finalised using expert pool opinions. The fifth chapter develops government debt policy model, which is validated using the Baltic state data, and proposes the method for the elaboration of the government debt policy in dependence on the economic growth and recession period.