§ Mr. LivingstoneTo ask the Chancellor of the Exchequer (1) what growth in the budget deficit would occur if growth in gross domestic product was only 2 per cent. per annum after 1994; what would be the total level of Government debt as a proportion of gross domestic product in each of the next five years on that assumption; and what proportion of the budget deficit in each of the next five years will be incurred by revenue spending at current prices;
(2) what changes there would be in the budget deficit at a rate of growth in gross domestic product after 1994 of (a) zero per cent., (b) 1 per cent., (c) 2 per cent., (d) 3 per cent. and (e) 4 per cent.; what would be the total level of Government debt as a proportion of gross domestic product in each of the next five years on these assumptions; and what proportion of the budget deficit in each of the next five years would be incurred by revenue spending at current prices.
825W
§ Mr. PortilloTable 2.5 of the 1994–95 "Financial Statement and Budget Report" shows projections to illustrate the effects on the public sector borrowing requirement of higher or lower growth than the main growth projection in the medium term financial strategy, assuming unchanged policies. On those assumptions public sector net debt would fall to around 36½ per cent. of GDP by 1998–99 in the higher growth case illustrated in the FSBR, and it would rise to around 47¼ per cent. of GDP in the lower growth case. Tables 2.2 and 2.3 of the FSBR set out the main projections and show details of Government revenues and spending, and the current balance of the public sector, over the next five years.