Public debt in the Excessive Deficit Procedure (EDP) is calculated according to the gross and nominal value, which is determined by the financial debt to the entities that are consolidated in the general government sector. Ceteris paribus, the deficit corresponds to the variation of public debt. However, it is necessary to consider the stock-flow adjustment effect (those operations that do not have an impact on the deficit but have an impact on the public debt). Net borrowing (NB) = fiscal deficit + acquisition of financial assets + debt regularisation and assumption of liabilities − privatisations revenues used in the amortisation of debt. Gross net borrowing = NB + annual amortisation of public debt.
- CFP (2013) Apontamento sobre dívida pública. http://www.cfp.pt/wp-content/uploads/2013/10/CFP-APT-01-2013-PT2.pdf
- ESA 2010 European System of Accounts 2010. https://ec.europa.eu/eurostat/cache/metadata/Annexes/nasa_10_f_esms_an1.pdf
- Eurostat (2016) Manual of government deficit and debt. https://ec.europa.eu/eurostat/documents/3859598/7203647/KS-GQ-16-001-EN-N.pdf/5cfae6dd-29d8-4487-80ac-37f76cd1f012. Accessed 1 Nov 2016