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