Gov­ern­ment long-term debts grow 46.68 per­cent in seven years: MOF

The China Post - - LOCAL - BY JOHN LIU

The cen­tral gov­ern­ment’s longterm debts have grown 46.68 per­cent, or NT$1.71 tril­lion, in the seven years af­ter Pres­i­dent Ma Ying-jeou took of­fice, the Min­istry of Fi­nance (MOF, ) re­ported yesterday.

The amount is l ess than the 68.7- per­cent in­crease, or NT$1.49 tril­lion, logged by the pre­vi­ous gov­ern­ment.

As of July 2015, the amount of long-term debts, or obli­ga­tions that are to come due in a greater than 12-month pe­riod, reg­is­tered at 5.31 tril­lion.

The amount is 34.7 per­cent of the GDP av­er­aged out over the past three years, and falls within the 40.6-per­cent range man­dated un­der the Public Debt Act. As such, the gov­ern­ment can still raise an ad­di­tional NT$904.5 bil­lion.

The MOF stressed that the amount of debt in­crease has dropped from the peak NT$410.5 bil­lion in 2010 to NT$169.2 bil­lion in 2015, show­ing that the gov­ern­ment has suc­cess­fully man­aged its debt level while launch­ing de­vel­op­ment pro­grams.

The share of fi­nanc­ing has also de­creased from 21.51 per­cent in 2009 to 11.61 per­cent in 2015, the MOF added.

The Ma gov­ern­ment raided debts in or­der to cope with the 2008 fi­nan­cial cri­sis and the catas­tro­phe brought by Typhoon Mo­rakot in 2009, the MOF ex­plained.

The funds were used for the is­sue of con­sump­tion vouch­ers, and the ex­pan­sion of public in­fra­struc­ture, among other pur­poses.

Due to new poli­cies that for­bid sales of stock hold­ing and large pieces of na­tional real es­tate, the gov­ern­ment has col­lected less rev­enues since 2009, by NT$60.4 bil­lion ev­ery year on av­er­age.

Af­ter tak­ing rev­enues col­lected, debts raised, and all other fac­tors into ac­count, the gov­ern­ment raised an an­nual NT$127.3 bil­lion on av­er­age, which is not ex­ceed­ingly high com­pared with those in past years, the MOF said.

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