2018/19 Budget Communication 2018_2019 BUDGET COMMUNICATION | Page 78

One will note a large increase in debt redemption
this fiscal year to a level of over $1 billion as compared to
the Budget estimate of $433 million.
That level of
redemption reflects the Government’s decision to effect a
sizeable rollover of bridging facilities into longer term debt
through the proceeds of the $750 million international bond
issue in late 2017. Such repayment of debt appears as part
of Recurrent Expenditure, which explains the large increase
in that component of the fiscal accounts. Given that debt
repayment is, however, deducted in the calculation of the
GFS
deficit,
we
have
appropriately
modified
our
presentation of Recurrent Expenditure to exclude debt
repayment.
It is important to point out, Mr. Speaker, that this
administration – in terms of its application of GFS deficit
recording and reporting at the summary level – is applying
75