A large public debt, accumulated through persistent government borrowing, indeed imposes significant constraints on a nation's fiscal policy, often compelling governments to adopt measures that lead to higher taxes and reduced public services. This is a direct consequence of the need to service the debt and maintain fiscal sustainability.

Firstly, a substantial portion of the government's budget must be allocated to paying interest on its debt. These interest payments are a non-discretionary expenditure, meaning they must be paid regardless of other priorities. As debt grows, so does the interest burden, diverting funds that could otherwise be spent on essential public services like education, healthcare, infrastructure, or social welfare programs. This directly translates to reduced services for citizens.

Secondly, to manage and reduce the debt, governments face immense pressure to increase revenue and decrease expenditure. Increasing revenue typically involves raising taxes. This could manifest as higher income taxes, corporate taxes, sales taxes, or the introduction of new levies. Such tax increases can burden households and businesses, potentially dampening economic activity.

Concurrently, governments are forced to cut spending. This often means reducing allocations to various public services, leading to austerity measures. Programs might be scaled back, subsidies withdrawn, or public sector employment frozen, all of which impact the quality and availability of services for the populace. Furthermore, a large public debt can erode investor confidence, potentially leading to higher borrowing costs and further exacerbating the fiscal challenge. It also limits the government's ability to respond to future economic shocks or invest in growth-enhancing projects, creating a vicious cycle of fiscal constraint and underdevelopment. Thus, the burden of public debt inevitably translates into a trade-off between fiscal prudence and the provision of public goods and services.