The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Government is increasing its short-term debt limits by 20 per cent, from 50 to 60 per cent, via reforms to the Financial Administration and Audit Act.

Michael Halkitis, minister of state for finance, said the Christie administration was not seeking to increase the threshold, calculated as a percentage of the Government’s ordinary revenue over a two-three year period, three-fold.

He said various legislation currently gave the Government the authority to borrow from the Central Bank a sum equivalent to 10 per cent of its ordinary revenue; issue Treasury Bills equivalent to 25 per cent of its ordinary revenue; and borrow a sum equal to 15 per cent of ordinary revenue from financial institutions.

Together, the current short-term debt limit equals 50 per cent of ordinary revenue. The new Act, which consolidates all this legislation into one, increases the limit to 60 per cent.