§ Mr. SpearingTo ask the Chancellor of the Exchequer, pursuant to his answer of 4 March,Official Report, column 552, concerning the scoring of future investment in London Underground Ltd. in respect of the obligations imposed by the treaty on European union, if he will set out the differences between the criteria determining whether public investment contributes to (a) the general government deficit and (b) the public sector borrowing requirement. [19204]
§ Mr. Kenneth ClarkeThe capital expenditure of bodies in general government—central and local government—scores in the calculation of the general government financial deficit. The capital expenditure of public corporations does not affect the GGFD, as public corporations are not part of general government. However, if public corporations' capital expenditure is financed by general government capital grants or subsidies, this expenditure will score as general government expenditure and thus increase the GGFD. All borrowing by general government and public corporations scores in the PSBR.