Debt Office Commentary: The central government’s net borrowing requirement is a measure of its cash flow

Publication 9 June 2020

A Debt Office Commentary is part of a series of essays in which Swedish National Debt Office employees contribute to furthering the understanding of a relevant subject. Debt Office Commentary 2 2020: The central government’s net borrowing requirement is a measure of its cash flow addresses how the borrowing requirement is calculated.

The central government net borrowing requirement shows how much money the central government needs to borrow to cover its ongoing operations. The Debt Office makes independent forecasts of the net borrowing requirement, which have an important role in the development of borrowing plans. Accurate forecasts enable the Debt Office to plan and manage borrowing in a way that helps minimise the long-term cost of central government debt.

Sofia Nilsson and Elin Stenbacka are economists at the Swedish National Debt Office’s Economic Analysis Department.

Debt Office Commentary: The central government’s net borrowing requirement is a measure of its cash flow