As a non-cash item, depreciation cannot determine net lending/borrowing, which measures the public sector’s net requirement for finance

As a non-cash item, depreciation cannot determine net lending/borrowing, which measures the public sector’s net requirement for finance 2.166. Depreciation is recorded as an expense and as a negative component of net acquisition of non-financial assets. This ensures its exclusion from GFS net lending(+)/borrowing(-), which …