What constitutes a draw on Past Reserves?

A draw on Past Reserves can occur in several ways. For example:

• The Government or a Fifth Schedule entity spends more than the reserves it has accumulated during the current term of Government.

• An asset is sold below its fair market value and the difference is not topped up from Current Reserves – i.e., the reserves that were accumulated in the current term of Government. Fair market value of an asset is the price that it would fetch in a free and open market, between a willing buyer and willing seller.

Find out more about our reserves.