Question 63

Does the Enacted Budget present three estimates related to government borrowing and debt: the amount of net new borrowing required during the budget year; the total debt outstanding at the end of the budget year; and interest payments on the debt for the budget year?
 * 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 63 asks about three key estimates related to borrowing and debt:
 * the amount of net new borrowing required during the budget year;
 * the total debt outstanding at the end of the budget year;
 * the interest payments on the outstanding debt for the budget year.

Debt is the accumulated amount of money that the government borrows. The government can borrow from its citizens, 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. For the purposes of this question, the deficit may be accepted as a proxy for net new borrowing.

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

1) Using EBP documents to respond to EB questions
Researchers should not use EBP documents to respond to EB questions (59-63), UNLESS
 * there is a very specific citation in the Appropriations Act itself to a specific document that was tabled as part of the EBP and not modified by the legislature. This mostly applies to Westminster system countries.
 * The EBP documents are re-uploaded with a new cover page and/or title that signals that it is now approved/enacted rather than proposed/draft.

2) Debt Limits as Proxies for Total Outstanding Debt
Debt limits are not usually used as a proxy for total outstanding debt, as many countries set debt limits above the levels of total estimated debt to provide some cushion. In China, a debt limit figure was provided in their 2018 EB which was not accepted as total outstanding debt.