Public Debt

  • Joaquim Miranda Sarmento
Part of the Financial and Monetary Policy Studies book series (FMPS, volume 47)


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.


  1. Alesina A, De Broeck M, Prati A et al (1992) Default risk on government debt in OECD countries. Econ Policy 7:427–463CrossRefGoogle Scholar
  2. CFP (2013) Apontamento sobre dívida pública.
  3. Eurostat (2016) Manual of government deficit and debt. Accessed 1 Nov 2016

Copyright information

© Springer Nature Switzerland AG 2018

Authors and Affiliations

  • Joaquim Miranda Sarmento
    • 1
  1. 1.ISEG Lisbon School of Economics and ManagementUniversity of LisbonLisbonPortugal

Personalised recommendations