08.16.2001
Gov’t to push debt financing limits again in 2002

• Development: Cabinet has finalized review of its 2002 budget. The budget that will be submitted to the Legislative Yuan for review at month’s end and calls for expenditures of NT$1.599tn against revenue of NT$1.340tn.

• Analysis: The government plans to issue NT$255bn worth of new debt on top of NT$102.7bn from previous years’ surpluses to finance a total deficit of NT$357.7bn, including old debt.

• Primasia View: Issue of new debt will be equivalent to 16% of total expenditure, once again over the 15% statutory new bond-to-expenditure ceiling.