HC Deb 20 February 1976 vol 905 cc840-1W
Mr. Ridley

asked the Chancellor of the Exchequer if he has estimated the approximate size of the public sector deficit, the general Government deficit and the public sector borrowing requirement implied by the projections of the growth and use of resources in the 1976 White Paper on Public Expenditure; and if he will publish his estimates for the terminal year of the projections in constant 1970 prices or as a percentage of GDP or GNP.

Mr. Joel Barnett

The public sector deficit and the public sector borrowing requirement are hard to forecast since they reflect the way in which Government respond to the economic circumstances of the day, including the consequences of their public expenditure policies and fiscal policies, and the behaviour of savings ratios. The new Public Expenditure White Paper makes plain that As the world economy recovers the Government intend that public sector borrowing should be reduced steadily to a normal level in relation to national income.

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