Debt spending cut
R. Anne Shirley, Business Writer
As promised, total debt expenditure in the Estimates of Expenditure for the upcoming fiscal year has been slashed by $121.9 billion as compared with the final projections presented in the Second Supplementary Budget passed in the House of Representatives last week.
The Government expects to spend a total of $237.2 billion (or 47.5 per cent of the total Budget) on debt charges for the fiscal year 2010-11 with $164.9 billion (or 33 per cent of the Budget) to cover interest and amortisation on domestic loans and $72.3 billion (or 14.5 per cent) on external loans.
Total interest charges are estimated at $140.4 billion. Of this amount, interest expenses on internal debt and external debt are projected at $95.09 billion and $45.3 billion, respectively.
In terms of loan repayment, the Ministry of Finance expects to repay approximately $96.8 billion in outstanding loans with $69.8 billion to cover the repayment of domestic loans, and $27 billion to cover external loan repayments.
Fiscal year slashed by $121.9b
FY 2010/11FY 2009/10 Difference Repayment of loans (amortisation) $96.834b$172.286b-$ 75.452bInternal debt$69.837b$147.685b-$ 77.848bExternal debt $26.997b $24.601b $2.759b
Public debt charges (interest) $140.387b$186.821b-$46.434bInternal debt $95.093b $144.177b-$49.084bExternal debt$45.294b $42.644b $2.650b
TOTAL DEBT CHARGES $237.221b$359.107b-$ 121.886bInternal debt$164.930b$291.862b -$126.933bExternal debt$72.291b $67.245b $5.409b
TOTAL BUDGET (Recurrent + Capital A & B)$499.388b$593.064b-$93.676b
Amortisation as % of tot Budget19.39%29.05%
External debt5.41% 4.14%
Interest as % of total Budget28.11%31.50%Internal debt 19.04%24.31%
External debt9.07% 7.19%
Total debt charges as % of ttotal Budget47.50%60.55%Internal debt33.03%49.21%External debt14.48%11.34%