Understanding debt and its historical trends is important, as the level of debt provides one measure of the strength of public finances. Levels of public sector borrowing fluctuate in line with the economic cycle and the budget position. This paper briefly describes the various measures of debt...

Understanding the relationship between the budget and the balance sheet, and the impact of debt on both, is critical in assessing fiscal sustainability. This paper briefly describes the concepts of debt and the cost of servicing debt that are reported in the budget papers.