There are several methods of defining national debt or the debt of the public administration sector. The most frequently used method is so called Maastricht debt, which is also one of the criteria for adoption of the euro. In 2006 the debt reached SKK 537.9 billion; in 2008 the debt is expected to grow to SKK 616.3 billion. This method also makes provision for the debts of other elements of public administration.

Source: Public administration budget proposal for 2008-2010

Sources: 1. Institute for Financial Policy, Ministry of Finance, Review of Basic Macroeconomic Indicators since 1993; 2. Proposed public administration budget for 2008-2010.

The 2008 state budget includes interest payments on the national debt and other expenses associated with administration of the debt in the amount of SKK 27.4 billion (for comparison, the budget provides SKK 33.1 billion for healthcare). National debt arises whenever the government spends more than it takes in through taxes. In order to cover the state budget deficit it obtains funds by issuing debt instruments. The new deficit increases the original national debt.

The average interest rate achieved at auctions carried out in 2006 was 4.1% annually. Data for 2007 is not yet available.