Public Debt Act Article 4

The term "public debt" as used in this Act means the following forms of debt incurred by the central government, special municipalities, counties (and county-level cities), and townships (and township-level cities) in support of covering the expenditure on public affairs:1. Central government bonds, treasury bills, domestic or foreign loans, and guaranteed liabilities.2. Special municipality, county (or county-level city) government bonds, bills, and domestic or foreign loans.3. Township (or township-level city) domestic or foreign loans.The term " loans " as used in this Act means funds borrowed by the central government, special municipalities, counties (and county-level cities), and townships (and township-level cities) from a domestic or foreign source on a long-term or short-term basis, and funds borrowed by the same that are overdrawn or rescheduled. The term "loan cap" means debt incurred to make up the difference between the annual revenue and annual expenditure for a given fiscal year, and newly incurred debt under a Debt Service Fund other than new borrowings to roll over maturing debt under the same Fund.Except as otherwise provided by law, public debt incurred by each level of government shall be for the purpose of financing capital expenditures.The central government's debt under Paragraph 1 does not include the debt incurred by the Central Bank for the purpose of monetary regulation and maintaining financial stability.Special municipalities under this Act include counties to which the provisions for special municipalities apply mutatis mutandis as provided in Paragraph 2, Article 4 of the Local Government Act.