The central government net borrowing requirement is the reflection of the state budget balance. If there is a deficit in the state budget, we borrow and if there is a surplus, we repay the debt (amortise). When we amortise, we say that the net borrowing requirement is negative.
The net borrowing requirement is usually divided into primary borrowing requirement and interest on the central government debt. The primary borrowing requirement is usually also divided into primary balance and the Debt Office’s net lending to authorities and state-owned enterprises.
Primary balance (all central government current revenues and payments)
+ Net lending (authorities and government-owned enterprises borrowing at the Debt Office)
= Primary borrowing requirement
+ Interest (interest payments on the central government debt)
Net borrowing requirement