Exactly this. In a significant chunk of the cases, debt is just left pocket/right pocket accounting within the local economy when aggregating across government sector, private sector and individuals.
If these deficits creates positive externalities (eg. Jobs through expansion of business, new deal program, or even as we've seen in massive programs like NREGA - increasing purchasing power through direct cash deposits). If the deficit spending puts wealth in the pockets of financial speculators, this is often a problem.
Even for external debt denominated in local currency, devaluation is always an option (though may not be attractive). It's only foreign currency denominated debt which is a problem.
If. And if they did there would be endless piles of political fodder. Politicians patting themselves on the back praising their genius. Etc.
That's not happening. Conclusion? If is generally closer to highly unlikely.
As for left pocket / right pocket those shifts have overhead. A program(s) to manage the programs. Let's consider that interest. Let's consider that too little value added to the taxpayers. In other words, the deficit is being used to perpetuate the government and the status quo, and not much more.
In theory I agree with you. Unfortunately, the reality is much different. The fact it has been normalized doesn't mean we should accept it.
If these deficits creates positive externalities (eg. Jobs through expansion of business, new deal program, or even as we've seen in massive programs like NREGA - increasing purchasing power through direct cash deposits). If the deficit spending puts wealth in the pockets of financial speculators, this is often a problem.
Even for external debt denominated in local currency, devaluation is always an option (though may not be attractive). It's only foreign currency denominated debt which is a problem.