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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).

The gross debt will rise in absolute terms over the coming years, mainly because of capital investments, but its weight in the economy will continue to decline.

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