Transcript FIJI`S PUBLIC DEBT

FIJI’s PUBLIC DEBT
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Mandate to audit Public Debt
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Constitution
Audit Act
Finance Management Act 2004
Accounts and Records
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Borrowing Fund Account-St. of Receipts and
Expenditure
1. Role of Fiji SAI
 Analyse the Borrowing Fund Account
 Examine Reported Public Debt
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Foreign and domestic components
Changes in debt balances during the period
Financial costs
Components of internal control – authorization,
initiating and recording transactions
Role of Fiji SAI contd.
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Verification of debt records
Compliance
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Internal Controls
Laws and Regulations
Analyse the Borrowing Fund Account
Areas of Public Debt Management examined
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Contract terms and conditions of borrowings
Service (interest, discounts, and expense) payment
procedures
Authorizations
Revaluation of foreign loans
Applications of resources from foreign lending agencies
Regulatory requirements for granting government guarantees
Contingent Liabilities
2.
Composition of Outstanding
Borrowings 2007
Figure 7.1
Composition of Public Debt in 2007
Overseas Loans
15%
Treasury Bills
5%
Domestic Loans
80%
3.
Borrowing in the Last Ten Years
Year
Domestic
Bond
$
% of Total
Borrowing
Treasury
Bills
$
% of
Total
Overseas
Loan
$
% of Total
Borrowing
Total
$
1998
1,016,273,250
78
43,790,072
3
245,557,713
19
1,305,621,035
1999
1,046,595,650
76
117,231,671
9
206,036,450
15
1,369,863,771
2000
1,158,595,650
81
72,449,838
5
207,697,167
14
1,438,742,655
2001
1,302,595,650
77
176,604,613
10
206,889,315
12
1,686,089,578
2002
1,501,095,650
80
196,432,453
10
193,505,879
10
1,891,033,982
2003
1,682,718,650
79
276,925,838
13
174,125,752
8
2,133,770,240
2004
1,986,515,650
87
126,987,822
6
168,665,379
7
2,282,168,851
2005
2,121,422,650
87
136,018,387
6
164,050,924
7
2,421,491,962
2006
2,300,672,650
80
141,311,687
5
416,729,200
15
2,858,713,537
2007
2,196,208,150
80
141,160,433
5
397,103,384
15
2,734,471,967
3.1 Govt. Borrowings Outstanding
 From 1998 - 2007
Figure 7.2
Government Borrowings Outstanding (1998 - 2007)
3,500,000,000
Amount ($m)
3,000,000,000
2,500,000,000
Treasury Bills
2,000,000,000
Overseas Loans
1,500,000,000
Domestic Loans
1,000,000,000
Total Borrowings
500,000,000
0
1998
1999
2000
Years
2001
2002
2003
2004
2005
2006
2007
4.
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2006 $348,146,225
2007 $306,858,903
400,000,000
350,000,000
Amount ($m)
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Deficit to be Financed from
Borrowings
300,000,000
250,000,000
200,000,000
150,000,000
100,000,000
50,000,000
0
1998
1999
2000
Year
2001
2002
2003
2004
2005
2006
2007
5. Overseas Loan Raised in 2007
 Yearly Overseas Borrowings
Figure 7.4
Yearly Overseas Borrowings: 1998 - 2007
Amount ($m)
300
250
200
150
100
50
0
1998
1999
2000
Year
2001
2002
2003
2004
2005
2006
2007
5.1 Composition of Outstanding
Overseas Loans
 2007 Composition
Figure 7.10
Composition of Outstanding Overseas Loans
E-Government Project
1%
Alternative Livelihood
Project
0.25%
Global Borrowing
59%
Rural Electrification
1.3%
Others
Road Upgrading
1.5%
21%
Agriculture
1.3%
Water Supply & Sewage
Project
14%
Investment/Export
Programme
1%
6. Treasury Bills Raised
 Composition of Treasury Bills
Composition of Treasury Bills
Colonial Fiji Life Limited Credit Corporation Ltd
0.1%
0.3%
Air Pacific Ltd
4%
Home Finance
0.4%
Life Insuarnce
Corporation
0.4%
Others
0.2%
FNPF
9%
Commercial Banks
87%
7.
Flexibility – Interest Bite
 Percentage of Debt Repayments to Total
Revenue
Figure 7.7
Percentage of Debt Repaym ents to Total Revenue
100%
90%
Percentage
80%
Revenue for
Government Programs
70%
60%
50%
40%
30%
20%
"Interest Bite"
10%
0%
1998
1999
2000
Years
2001
2002
2003
2004
2005
2006
2007
8. Vulnerability
 Measures the degree of dependence of
Government on sources of Borrowing outside
its control.
 One of the measures is the comparison of
overseas loan to the total debt.
8.1 Overseas Loan Percentage to
Total Government Debt
 Trend
Percentage
Figure 7.8
Overseas Loan Percentage to Total Government Debt
0.2
0.18
0.16
0.14
0.12
0.1
0.08
0.06
0.04
0.02
0
1998
1999
2000
Years
2001 2002 2003 2004 2005 2006 2007
9. Sustainability
 Government Borrowing as a % of GDP
Figure 7.9
Government Borrowings as a % of GDP
60%
Percentage
50%
40%
30%
20%
10%
0%
1998
1999
2000
2001
2002
Years
2003
2004
2005
2006
2007
10. Summary & Conclusion
 Total debt outstanding decreased by $124m or 5% in
2007 compared to 2006.
 The Deficit to be financed from Borrowing also
decreased by $41.3m or 12% compared to 2006
 Overseas loans raised in 2007 also saw a decrease
of $19.6m o5 5% compared to that of 2006, and
 The decrease of 4% in the Public debt ratio as a % of
GDP indicates a favorable sustainability in debt.
Thank You
 Questions if Any!!!