Posted 17/04/2015 by Alicia Hall
This Flagpost article presents a snapshot of the Australian Government’s current debt position.
Gross debt: The International Monetary Fund’s Government Finance Statistics Manual (2014) defines gross debt as ‘all liabilities that are debt instruments’ with a debt instrument defined as ‘a financial claim that requires payment(s) of interest and/or principal by the debtor to the creditor at a date, or dates, in the future.’
Gross debt is not a concept used in the context of the Australian Government Budget Papers. However, it can be calculated using certain balance sheet liabilities. The major component of gross debt on the Australian Government’s balance sheet is Commonwealth Government Securities. This has been used as a proxy for gross debt in this paper, due to the availability of time series data on this item. Read more...