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  Budget 2020-2021

Growth factors of the gross debt

During the year, the gross debt increases for the following reasons:

  • The budgetary deficit, if any. A budgetary surplus reduces gross debt.
  • Government investments in fixed assets (e.g. roads).
  • Government investments in its enterprises. These investments are made through advances, cash contributions or by allowing the government enterprises to keep part of their earnings to finance their own investments.
  • Changes in some of the government’s other asset and liability items (e.g. accounts payable and accounts receivable).

After declining gradually over several years reaching 43.3% of GDP as of March 31, 2020, the gross debt is expected to increase substantially in 2020‑2021, owing to the impact of the economic contraction on own-source revenue and the actions taken to manage the public health crisis and support the economy.

For their part, deposits in the Generations Fund will lead to a reduction in the gross debt.