HC Deb 27 February 2003 vol 400 cc685-6W
Mr. Gerald Howarth

To ask the Chancellor of the Exchequer what his forecasts are for the Government's(a) budget deficit and (b) PSBR, (i) in absolute terms and (ii) as a proportion of GDP, for the next five financial years; whether these will be compliant with the terms and conditions of euro membership and the stability pact; and if he will make a statement. [99600]

Mr. Boateng

Projections of public sector net borrowing as a proportion of GDP and in £ billion for the next five financial years are shown in the 2002 Pre-Budget Report, in Tables B2 and B5 respectively. The public sector net cash requirement, formerly known as the public sector borrowing requirement (PSBR), is shown in Table B22 of the 2002 Pre-Budget Report for 2001–02 and 2002–03.

Table B2 of the 2002 Pre-Budget Report also shows the Treaty measures of deficit and debt used in the excessive deficits procedure. The reference levels of 3 per cent. of GDP for the deficit and 60 per. cent of GDP for gross debt are comfortably achieved throughout the period. The projections are consistent with the Government's prudent interpretation of the Stability and Growth Pact, which takes into account the economic cycle, sustainability and the important role of public investment (as specified in Article 104 of the EC Treaty).