Public Borrowing (Hansard, 20 May 1992)

§ Mr. Blunkett
To ask the Chancellor of the Exchequer if he will publish for the last 10 financial years the level of public debt that would accord with the definition of Government debt as defined in the Maastricht treaty protocol, showing where it differs from currently published measures of outstanding Government debt.

§ Mr. Nelson
[holding answer 13 May 1992]: The reference level for Government debt in the protocol to the Maastricht treaty is defined in terms of general Government gross debt (GGGD) at nominal values, measured at 31 December and expressed as a percentage of GDP at market prices for that year. Figures for 31 December are not at present available. Current estimates for 31 March of each year are shown in the table. The outturn data and projections published in the "Financial Statement and Budget Report" refer to net public sector debt (NPSD), and are expressed as a percentage of GDP in the year centred on end March. Compared to gross general Government debt, NPSD includes the debt of public corporations and subtracts the public sector's short-term liquid assets.

GGGD(£bn) GGGD(percentage of GDP¹) NPSD(percentage of GDP²)

end

1981–82 142.2 55½ 47½

1982–83 151.8 54 46¼

1983–84 167.7 55¼ 46¾

1984–85 183.8 56½ 47

1985–86 193.6 54¼ 45¼

1986–87 201.5 52½ 42¾

1987–88 211.5 49¾ 38¼

1988–89 199.4 42¼ 32

1989–90 190.7 37¼ 28

1990–91 195.1 35¼ 27¼

¹ financial year GDP

² GDP in four quarters centred on end—March

Source: Financial statistics table SI, February 1992 edition

§ Mr. Blunkett
To ask the Chancellor of the Exchequer if he will publish for the last 10 financial years the level of public borrowing or repayment that would accord within the definition of budget balance as defined in the Maastricht treaty protocol; and if he will recast the 1992–93 and 1993–94 forecasts in the same manner, showing in each case how these differ from the same periods public sector borrowing requirement figures.

§ Mr. Nelson
[holding answer 13 May 1992]: The reference level set in the protocol to the Maastricht treaty was in terms of the ratio of net Government borrowing to GDP. This definition corresponds most closely with the general Government financial deficit (GGFD) in the United Kingdom national accounts, GGFD figures are given in the table. The GGFD differs from the public sector borrowing requirement in that it is measured on an accruals basis whereas the PSBR is a cash concept. The GGFD also excludes borrowing by public corporations, and does not take account of privatisation proceeds and various other financial transactions.
184W

GGFD¹ PSBR PSBR excluding privatization proceeds

£ billion Per cent Of GDP Per cent Of GDP Per cent of GDP

1982–83 8.0 2.8 3.2 3.3

1983–84 11.9 3.9 3.2 3.6

1984–85 12.5 3.9 3.1 3.7

1985–86 8.8 2.5 1.6 2.3

1986–87 9.0 2.4 0.9 2.1

1987–88 2.7 0.6 -0.8 0.4

1988–89 -7.4 -1.6 -3.1 -1.6

1989–90 -0.9 -0.2 -1.5 -0.7

1990–91 2.4 0.5 -0.1 0.9

1991–92 18.2 3.1 2.4 3.7

1992–93 31.6 5.1 4.5 5.8

²1993–94 3.3 5 4.4 5½1

¹ assuming public expenditure reserve wholly allocated to general Government in 1992–93 and 1993–94

² MTFS projections

	GGGD(£bn)	GGGD(percentage of GDP¹)	NPSD(percentage of GDP²)
end
1981–82	142.2	55½	47½
1982–83	151.8	54	46¼
1983–84	167.7	55¼	46¾
1984–85	183.8	56½	47
1985–86	193.6	54¼	45¼
1986–87	201.5	52½	42¾
1987–88	211.5	49¾	38¼
1988–89	199.4	42¼	32
1989–90	190.7	37¼	28
1990–91	195.1	35¼	27¼
¹ financial year GDP
² GDP in four quarters centred on end—March

	GGFD¹	PSBR	PSBR excluding privatization proceeds
	£ billion	Per cent Of GDP	Per cent Of GDP	Per cent of GDP
1982–83	8.0	2.8	3.2	3.3
1983–84	11.9	3.9	3.2	3.6
1984–85	12.5	3.9	3.1	3.7
1985–86	8.8	2.5	1.6	2.3
1986–87	9.0	2.4	0.9	2.1
1987–88	2.7	0.6	-0.8	0.4
1988–89	-7.4	-1.6	-3.1	-1.6
1989–90	-0.9	-0.2	-1.5	-0.7
1990–91	2.4	0.5	-0.1	0.9
1991–92	18.2	3.1	2.4	3.7
1992–93	31.6	5.1	4.5	5.8
²1993–94	3.3	5	4.4	5½1
¹ assuming public expenditure reserve wholly allocated to general Government in 1992–93 and 1993–94
² MTFS projections