Published: 2001
Total Pages: 44
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For four years, the United States has had a budget surplus that has resulted in decreasing debt levels. Debt held by the public fell approximately $453 billion from the end of fiscal year 1997 to the end of fiscal year 2001. Although it appears now that the economy and the challenges of combating terrorism will prompt deficits for the short term, we may again return to surpluses. A number of other nations experienced a cycle of budget deficit and surplus before the United States. GAO examined the experiences of some of these nations looking for insights and lessons learned for the United States. Particular attention was paid to the various techniques used, including the use of "debt buybacks." Five nations were selected--Australia, New Zealand, Norway, Sweden, and the United Kingdom-whose recent approaches and experiences with debt management in times of surplus might have relevance to or provide useful information for the United States. To obtain information on the experiences of these other nations in managing sovereign debt, we interviewed government officials, capital market participants, academics, and others to discuss fiscal and debt management goals, the relationship between budget changes and debt policies and actions, and the nature of the capital markets in these nations.