Question 74

Do In-Year Reports present three estimates related to actual government borrowing and debt: the amount of net new borrowing; the total debt outstanding; and interest payments?
 * a. Yes, all three estimates related to government borrowing and debt are presented.
 * b. Yes, two of the three estimates related to government borrowing and debt are presented.
 * c. Yes, one of the three estimates related to government borrowing and debt are presented.
 * d. No, none of the three estimates related to government borrowing and debt are not presented.
 * e. Not applicable/other (please comment).

OBS Guidelines
Question 74 asks about three key estimates related to borrowing and debt:
 * the amount of net new borrowing so far during the year;
 * the central government’s total debt burden at that point in the year; and
 * the interest payments to-date on the outstanding debt.

Debt is the accumulated amount of money that the government borrows. The government can borrow from its citizens and banks and businesses within the country (domestic debt) or from creditors outside the country (external debt). External debt is typically owed to private commercial banks, other governments, or international financial institutions such as the World Bank and the International Monetary Fund.

Net new borrowing is the additional amount of new borrowing that is required for the budget year to finance expenditures in the budget that exceed available revenues. Net new borrowing adds to the accumulated debt. It is distinct from gross borrowing, which also includes borrowing needed to repay existing debt that matured during the budget year; debt that is replaced (or rolled over) does not add to the total of accumulated debt.

Interest payments on the debt (or debt service costs) are typically made at regular intervals, and these payments must be made on a timely basis in order to avoid defaulting on the debt obligation. Interest payments are separate from the repayment of principal, which occurs only when the loan has matured and must be paid back in full.

To answer “a,” In-Year Reports must present all three estimates of borrowing and debt. For a “b” answer, In-Year Reports must present two of those three estimates. For a “c” answer, IYRs must present one of the three estimates. Answer “d” applies if no information on borrowing and debt is presented in In-Year Reports.