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TAIWAN PUBLIC DEBTS MAY INCREASE BY 40% OF GDP: S&P.
TAIPEI, Aug 1 Asia Pulse - The U.S. rating agency Standard & Poor's predicted Tuesday that Taiwan public sector debts will have increased by 40 per cent of gross domestic product (GDP) by the end of this year from 22 per cent registered at the end of 1991.
Chow Bin, an analyst from Standard & Poor's, said that the deficit of the central government and various local governments and the debt burden are two important indicators when analyzing a nation's debts.
He pointed out that the deficit of the central government budget is projected to reach 2.9 per cent of GDP, while the general budget deficit (including central and local governments) will reach 4 per cent of GDP.
At the same time, he went on, the government's total debts will reach 40 per cent of GDP. He explained as follows:
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