§ Q10. Mr. Rentonasked the Prime Minister whether she is satisfied with the practice of combining current and capital financial requirements in the figures for the public sector borrowing requirement.
§ The Prime MinisterYes. The public sector borrowing requirement measures the net financing need of the public sector, after taking account of its surplus on current account, capital expenditure and receipts. The382W appropriate balance between taxation, expenditure, internal financing of the trading corporations and borrowing are the essence of fiscal policy. Within total public expenditure, we aim to maximise worthwhile capital expenditure.