Debt reduced at a record level, reaches 66.8% while budget has surplus

21/07/2017 00:00

The public debt has dropped for the first six months of this year, after
the government took measures to reduce loans and encourage national
production.

Official data from the Ministry of Finances show that the national debt went down to 66.9% of the GDP, from 70% that it was by the end of 2016.

Despite the increased spending during the electoral campaign, the debt didn’t grow because the government didn’t take any loans, but funded them from its own budget.

Official data show that in the first five months of the year, the budget had a 6.2 billion ALL surplus, or 50 million EUR.

Limited loans are just one of the reasons. The other is a higher economic growth.

The public debt is measured based on its GDP ratio. When economy grows, debt decreases.

The Ministry of Finances foresees a higher GDP than the past year, with a 95 billion ALL increase, which will make it easier reducing the national debt.

However, the debt figure is not final for the first six months, because it doesn’t include the money that the government is expected to borrow during the second half of the year.

The Ministry of Finances predicts that by the end of the year, the debt will be 68.9%.

Although this figure is higher than the first semester, it still shows a significant debt drop, compared to the past year.

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