Fiscal Deficit

HC Deb 21 November 1997 vol 301 cc330-1W

Mr. Mitchell

To ask the Chancellor of the Exchequer what is his target for the United Kingdom fiscal deficit related to GNP for the next four years. [15924]

Mrs. Liddell

The Government's fiscal policy will be guided by two strict rulesthe golden rule: over the economic cycle the Government will only borrow to invest and not to fund current expenditure; and public debt as a proportion of national income will be held over the economic cycle at a stable and prudent level.

The July 1997 "Financial Statement and Budget Report" set out medium-term projections for the public finances that showed a continuous decline in the fiscal deficit as a proportion of GDP. A new forecast will be published as part of the Pre-Budget Report.