Public Sector Deficit

HC Deb 20 December 1976 vol 923 cc74-5W

Mr. Gould

asked the Chancellor of the Exchequer (1) what proportion of the public sector deficit is financed by borrowing abroad;

(2) how successful he has been, in percentage terms, in financing the public sector deficit in the current year.

Mr. Denzil Davies

, pursuant to his reply [Official Report, 17th December 1976], gave the following information:

The public sector's aggregate borrowing needs are measured by the public sector borrowing requirement (PSBR) rather than the public sector deficit. The

FINANCING OF THE PUBLIC SECTOR BORROWING REQUIREMENT 1976–77 FINANCIAL YEAR FIRST HALF, SEASONALLY UNADJUSTED
		£million	Percentage of total
PSBR	…	5,275	100
Financed by—
Borrowing from the non-bank private sector—
Notes and coin	…	580	11
Sales of debt	…	2,123	40
Direct external finance of the public sector	…	1,860	35
Borrowing from the banking system—
in sterling	…	502	10
in foreign currencies	…	210	4

Sources:

Bank of England Quarterly Bulletin, December 1976; Central Statistical Office Press Notice on Public Sector Borrowing Requirement, 3rd December 1976.