§ 16. Mr. SoleyTo ask the Chancellor of the Exchequer what ratio of Government deficit to gross domestic product he assesses to be necessary to ensure budgetary discipline. [24336]
§ Mr. WaldegraveThe Government's fiscal objective is to bring the public sector borrowing requirement back towards balance over the medium term and, in particular, to ensure that, when the economy is on trend, the public sector borrows no more than is required to finance its net capital spending.
612WThe PSBR has fallen sharply in the past couple of years. As it returns towards balance, the ratio of net public sector debt to gross domestic product will stabilise and then begin to fall.